20230417Application.pdf

MEGAN GOICOECHEA ALLEN
Corporate Counsel
[e-mail]
April 14, 2023
Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714
Re: Case No. IPC-E-23-12
Application of Idaho Power Company for Authority to Implement Power Cost
Adjustment (“PCA”) Rates for Electric Service from June 1, 2023, through May
31, 2024
Dear Ms. Noriyuki:
Attached for electronic filing is Idaho Power Company’s Application in the above-
entitled matter.
In addition, please find attached the Direct Testimony of Jessica G. Brady filed in
support of the Application. A Word version of the testimony will also be sent in a separate
email for the convenience of the Reporter.
Accompanying this filing is the Company’s Press Release, Customer Notice, and
Direct Mail Postcard.
If you have any questions about the attached documents, please do not hesitate to
contact me.
Sincerely,
Megan Goicoechea-Allen
MGA:sg
Enclosures
RECEIVED
2023 April 14, 4:58PM
IDAHO PUBLIC
UTILITIES COMMISSION
APPLICATION - 1
MEGAN GOICOECHEA ALLEN (ISB No. 7623)
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT POWER
COST ADJUSTMENT (“PCA”) RATES
FOR ELECTRIC SERVICE FROM JUNE
1, 2023, THROUGH MAY 31, 2024.
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CASE NO. IPC-E-23-12
APPLICATION
Idaho Power Company (“Idaho Power” or “Company”), in accordance with Idaho
Code § 61-502 and Commission Rule of Procedure1 52, hereby respectfully requests the
Idaho Public Utilities Commission (“Commission”) approve an update to Schedule 55
based on the quantification of the 2023-2024 Power Cost Adjustment (“PCA”) to become
effective June 1, 2023, for the period June 1, 2023, through May 31, 2024. If the proposed
rates and charges for electric service in the state of Idaho included as Attachment 1 to
1 Hereinafter cited as RP.
APPLICATION - 2
this Application are approved, the 2023-2024 PCA will result in an overall revenue
increase of approximately $200.2 million, or a 14.68 percent increase from current billed
revenue.
In support of this Application, Idaho Power has filed the Direct Testimony of
Jessica G. Brady, Regulatory Analyst (“Brady Testimony”). Ms. Brady’s testimony details
the 2023-2024 PCA amount, explains the factors that impact this year’s PCA
quantification, details the calculation of the proposed 2023-2024 PCA rates, and
discusses the additional PCA component related to revenue sharing. In further support of
this Application, Idaho Power represents as follows:
I. BACKGROUND
1. Idaho Power is an Idaho corporation whose principal place of business is
1221 West Idaho Street, Boise, Idaho 83702.
2. Idaho Power is a public utility supplying retail electric service to more than
600,000 customers in southern Idaho and eastern Oregon. Idaho Power is subject to the
jurisdiction of this Commission in Idaho and to the jurisdiction of the Public Utility
Commission of Oregon. Idaho Power is also subject to the jurisdiction of the Federal
Energy Regulatory Commission.
3. The Company is compensated for “normal” costs of generating electricity
through its base electricity rates established by the Commission in general rate cases.
However, though the power supply expense component embedded in base rates is static,
due to the Company’s unique reliance on hydro generation, actual power supply
expenses vary from year to year with changes in streamflow conditions.
APPLICATION - 3
4. As a result of the Company’s request to establish a permanent mechanism
to adjust rates annually to reflect variations in power supply costs in Case No. IPC-E-92-
25, the Commission issued Order No. 24806 on March 29, 1993, in which it approved the
implementation of an annual Power Cost Adjustment procedure in order to provide
consistency and stability to rates.2 The PCA is a cost recovery mechanism that passes
on both the benefits and costs of supplying energy to Idaho Power customers. Neither
Idaho Power nor its shareholders receive any financial return on this filing – money
collected from the surcharge can be used only to pay power supply expenses.
5. Since its establishment, the PCA mechanism has been incrementally
refined and modified through a series of Commission Orders, as more fully set forth
below, to ensure the mechanism achieves its desired purpose and to incorporate other
distinct elements, such as revenue sharing, as circumstances dictated.
6. For example, following several Commission orders addressing the need to
modify the Company’s then-existing PCA methodology, the Company initiated Case No.
IPC-E-08-19 requesting the Commission approve a settlement stipulation that addressed
a number of issues and components of the PCA. In Order No. 30715, the Commission
approved the stipulation and changes to the PCA formula, which included, in pertinent
part, revising the PCA sharing methodology that allocates non-PURPA3 power supply
expenses between customers and shareholders.4 More specifically, the PCA sharing ratio

2 In the Matter of the Application of Idaho Power Company for Authority to Implement a Power Cost
Adjustment Tariff for Electric Service to Customers in the State of Idaho and for Approval of New Rates
for Service Under the FMC Special Contract, Case No. IPC-E-92-25, Order No. 24806, p. 25-26 (Mar. 23,
1993).
3 Public Utility Regulatory Policies Act of 1978 (“PURPA”).
4 In the Matter of Idaho Power Company’s Petition for Approval of Changes to its Power Cost Adjustment
(PCA) Mechanism, Case No. IPC-E-08-19, Order No. 30715, p. 4-5 (Jan. 9, 2009).
APPLICATION - 4
was modified to 95 percent customer, 5 percent Idaho Power.5 In addition, in Order No.
30715 the Commission approved changes to the Load Growth Adjustment Rate
(“LGAR”), third-party transmission expense, the PCA forecast, and power supply expense
distribution.6
7. Following the notice of intent to file a general rate case filed by the Company
in August 2009, the Company, Commission Staff, and other stakeholders worked together
to develop an approach that would allow the Company to implement a multi-year general
rate case moratorium while at the same time giving the Company the opportunity to
recover a maintenance level of earnings over the term of the moratorium. This ultimately
resulted in the Company seeking approval of a settlement stipulation filed in lieu of a
general rate case in Case No. IPC-E-09-30, which was granted by the Commission in
Order No. 30978.7 Through this stipulation, a revenue sharing mechanism was
established to allow the Company to amortize Accumulated Deferred Investment Tax
Credits (“ADITC”) when earnings fall below a certain Return on Equity (“ROE”) threshold,
or share a portion of revenues with Idaho customers in the form of a rate reduction when
earnings are above a certain ROE threshold. This ADITC/Revenue Sharing mechanism
was subsequently extended, and percentages, thresholds, and accounting were modified
5 With respect to PUPRA expenses and demand response incentive payments, when actual annual
expenses deviate from base level NPSE, the Company is allowed to pass 100 percent of the difference
for recovery or credit through the PCA.
6 Id.
7 In the Matter of the Application of Idaho Power Company for an Accounting Order to Amortize Additional
Accumulated Deferral Income Tax Credit and Approving a Rate Case Moratorium, Case No. IPC-E-09-30,
Order No. 30978, p. 5-7 (Jan. 13, 2010).
APPLICATION - 5
by the Commission in Order Nos. 32424,8 33149,9 and 34071.10
8. At the Commission’s request, Staff initiated Case No. GNR-E-10-03 to
explore issues related to the load growth adjustment portion of the utilities’ power cost
adjustment mechanisms, particularly considering use of a LGAR in periods of declining
load. In that case, the Commission ultimately adopted a revised LGAR methodology and
changed the name of the methodology to the Load Change Adjustment Rate (“LCAR”),
as set forth in Order No. 32206.11
9. In 2014 and 2015, the Company and Staff considered potential ways to
improve the PCA’s accuracy and, as a result of these efforts, agreed on a number of
changes to the calculation of the PCA true-up. The ensuing proposal, to convert the PCA’s
existing Load Change Adjustment deferral calculation to a Sales-Based Adjustment
(“SBA”), and modify the PCA deferral balance’s monthly interest calculation, was set forth
in a settlement agreement and submitted to the Commission in Case No. IPC-E-15-15.
On May 28, 2015, the Commission issued Order No. 33307 approving the following
changes to the PCA pursuant to the settlement agreement: (1) replacing the existing
LCAR with the SBA, calculated in the same manner as the LCAR but replacing the load-
based megawatt-hour (“MWh”) denominator with the corresponding sales-based MWh
denominator; and (2) calculating monthly interest on the deferral balance by assigning

8 In the Matter of the Application of Idaho Power Company to Extend and Modify Accounting Order to
Amortize Additional Accumulated Deferred Income Tax Credits (“ADITC”), Case No. IPC-E-11-22, Order
No. 32424, p. 4 (Dec. 27, 2011).
9 In the Matter Idaho Power Company’s Application to Extend its Accumulated Deferred Investment Tax
Credits/Revenue Sharing Mechanism Beyond 2014, Case No. IPC-E-14-14, Order No. 33149, p. 4-5
(Oct. 9, 2014).
10 In the Matter of the Investigation into the Impact of Federal Tax Code Revisions on Utility Costs and
Ratemaking, Case No. GNR-U-18-01, Order No. 34071, p. 4-5 (May 31, 2018).
11 In the Matter of the Commission’s Inquiry into Load Growth Adjustments that Are Part of Power Cost
Adjustment Mechanisms, Case No. GNR-U-10-03, Order No. 32206, p. 6-7 (Mar. 15, 2011).
APPLICATION - 6
annual base Net Power Supply Expenses (“NPSE”) to each month according to expected
base rate revenue collection as set in the Company’s last general rate case, Case No.
IPC-E-11-08.12
10. Following changes to federal and Idaho state tax rates implemented in
2018, the Commission opened a multi-utility case, Case No. GNR-U-18-01, to investigate
whether to adjust utilities’ rates and charges to reflect the income tax and revenue
requirement reductions resulting from the tax changes. After considering the impacts of
tax reform on its operations, the Company worked with Staff on a proposal that would
return to customers the tax benefits the Company was realizing under the tax law changes
with limited negative impact to the Company and entered into a settlement stipulation
reflecting the same. The settlement stipulation filed with the Commission on April 12,
2018, included, among other things, extending and modifying the ADITC/Revenue
Sharing mechanism to its current iteration. On May 31, 2018, the Commission issued
Order No. 34071 approving the settlement stipulation including the following modifications
to the sharing portion of the mechanism, which allowed for greater customer benefits.13
First, for actual year-end Idaho jurisdictional earnings greater than 10 percent ROE, all
amounts up to and including 10.5 percent ROE will be shared between customers and
the Company on an 80 percent and 20 percent basis, respectively.14 The customer
revenue sharing benefit will be in the form of a reduction to rates at the time the
subsequent year’s PCA becomes effective. Second, Idaho earnings above a 10.5

12 In the Matter of Idaho Power Company’s Application for Approval of Computational Modifications to the
True-Up Portion of the Power Cost Adjustment, Case No. IPC-E-15-15, Order No. 33307, p. 4-5 (May 28,
2015).
13 GNR-U-18-01, Order No. 34071, p. 4-5.
14 Id.
APPLICATION - 7
percent ROE will also be shared, with customers receiving 55 percent of the earnings in
the form of a reduction to rates at the time the subsequent year’s PCA becomes effective,
as well as 25 percent of the earnings applied as an offset to the Company’s pension
balancing account, with the Company retaining the remaining 20 percent.15
11. On May 28, 2021, the Commission issued Order No. 35054 approving the
Company’s 2021 annual PCA filing and instructing it, based on Staff’s recommendation
to simplify the PCA mechanism, “to initiate discussions with interested parties and to file
a case with the Commission to review whether the PCA mechanism should be modified”
before the Company’s next PCA application.16
12. As a result of this endeavor, the Company proposed in Case No. IPC-E-21-
38 to simplify its PCA mechanism by replacing the “true-up” and “true-up of the true-up”
components of the PCA with a balancing account. On January 10, 2022, the Commission
issued Order No. 35290 approving the Company’s request to modify the PCA mechanism
thereby combining the two true-up components into one balancing account rate, referred
to below as the “Balancing Adjustment.”17 This modification was intended to make the
PCA more transparent and easier to understand and does not materially affect the overall
cost recovery of the PCA.

15 Id.
16 In the Matter of Idaho Power Company’s Application for Authority to Implement Power Cost Adjustment
(PCA) Rates for Electric Service from June 1, 2021 through May 31, 2022, IPC-E-21-10, Order No.
35054, p. 5 (May 21, 2021).
17Idaho Power Company’s Application for Modification of the Power Cost Adjustment Mechanism, Case
No. IPC-E-21-38, Order No. 35290, p. 2-3 (Jan. 10, 2022).

APPLICATION - 8
II. THE PCA MECHANISM
13. As explained more fully above, the PCA quantifies and tracks annual
differences between actual NPSE and the normalized or “base level” of NPSE recovered
in the Company’s base rates, resulting in a credit or surcharge that is updated annually
on June 1.
14. The PCA mechanism utilizes a 12-month test period of April through March
(“PCA Year”) and consists of a forecast component and a Balancing Adjustment (formerly
referred to as the “true-up” and the “true-up of the true-up”). The PCA forecast represents
the difference between the Company’s NPSE forecast from its March Operating Plan and
the base level NPSE recovered in the Company’s base rates. The PCA sharing
mechanism allows the Company to pass to Idaho customers 95 percent of the annual
differences in actual non-PURPA power expenses as compared to the base level NPSE,
whether positive or negative. The Balancing Adjustment includes a backward-looking
tracking of differences between the prior PCA Year’s forecast and actual NPSE incurred
by the Company and also tracks the collection of the prior year’s Balancing Adjustment.
15. The PCA is also the rate mechanism used by the Company to provide direct
revenue sharing benefits resulting from the Revenue Sharing mechanism originally
approved in Order No. 34071.
Forecast.
16. The Brady Testimony describes and computes the PCA rate to be effective
June 1, 2023, through May 31, 2024. The system-level forecast of NPSE for the 2023-
2024 PCA Year is $541,499,384, which is $235,814,515 higher than the currently
approved base level NPSE of $305,684,869 and $52,004,084 higher than last year’s
APPLICATION - 9
forecast amount of $489,495,300. The increase in this year’s forecast is attributed
primarily to higher forecast market energy and natural gas prices, combined with a limited
coal supply.
17. As described in Ms. Brady’s testimony, the difference between the system-
level forecast NPSE and the currently approved base level NPSE is adjusted for the PCA
sharing provisions and allocated to Idaho customers as more fully set forth in the Brady
Testimony to determine the 2023-2024 PCA forecast component to be collected from
Idaho customers of $218,005,217.
Balancing Adjustment.
18. Per Order No. 35290,18 the “true-up” and the “true-up of the true-up” have
been combined into a single Balancing Adjustment. In addition to the NPSE incurred
during the April 2022 through March 2023 period, Idaho Power included its actual cost of
Western Energy Imbalance Market (“EIM”) participation for April 2022 through March
2023 in the Balancing Adjustment as approved by the Commission in Order No. 34100.19
Benefits associated with EIM participation are embedded in actual NPSE experienced
over that same period.
19. The PCA Balancing Adjustment deferral balance at the end of March 2023,
with interest applied, was approximately $190 million, which represents an increase in
customer rates in this year’s Balancing Adjustment. Similar to the forecast, the increase
in the Balancing Adjustment is largely attributed to high natural gas and market energy
18 Case No. IPC-E-21-38.
19 In the Matter of the Application of Idaho Power to Establish a Method of Recovery for Costs Associated
with Participation in the Western Energy Imbalance Market, Case No. IPC-E-17-16, Order No. 34100, p.
3-4 (Jul. 2, 2018).
APPLICATION - 10
prices during the 2022-2023 PCA Year, combined with a limited coal supply. In addition,
hydro generation was 9 percent lower than forecast.
Revenue Sharing.
20. The Company’s earnings in each year from 2011 through 2015, as well as
2018 and 2021, resulted in revenue sharing with Idaho customers totaling $126.7 million,
either as a direct rate offset in the PCA or as an offset to amounts that would have
otherwise been collected in rates. The Company’s earnings in 2016, 2017, 2019, and
2020 were below the revenue sharing threshold. As described in greater detail in the
Brady Testimony, the Company’s 2022 Idaho jurisdictional year-end ROE was 9.8
percent. In accordance with the terms of the modified revenue sharing mechanism
approved by the Commission in Order No. 34071,20 the Company’s Idaho jurisdictional
year-end ROE was below the 10.0 percent ROE threshold for revenue sharing.
Therefore, the 2023-2024 PCA will not include a revenue sharing component.
III. 2023-2024 PCA CALCULATION AND PROPOSED RATE CHANGES
PCA Rate Calculation.
21. The Brady Testimony describes in detail how the PCA rate is determined,
including how each of its components are calculated. For the 2023-2024 PCA Year, the
Company’s uniform PCA rate is comprised of (1) the 1.4572 cents per kilowatt-hour
(“kWh”) adjustment for the 2023-2024 projected power cost of serving firm loads under
the current PCA methodology and 95 percent sharing and (2) 1.2714 cents per kWh for
the 2022-2023 Balancing Adjustment. The sum of these two components results in an
approximate 2.7286 cents per kWh charge for all rate classes.
20 GNR-U-18-01, Order No. 34071, p. 4-5.
APPLICATION - 11
Cumulative Proposed June 1, 2023, Rate Changes.
22. PCA. The 2023-2024 total PCA amount, as measured from the currently
approved base level NPSE is $408.2 million. This represents an increase in total billed
revenue of $200.2 million, an increase of 14.68 percent, for Idaho customers, effective
June 2023 through May 2024.
23. Fixed Cost Adjustment (“FCA”). On March 15, 2023, Idaho Power filed its
annual FCA in Case No. IPC-E-23-09. The Company’s 2023 FCA filing proposes a $10.0
million decrease in current billed revenue, or a 1.56 percent decrease, for Idaho
Residential and Small General Service customers, effective June 2023 through May
2024.
24. Combined Effect of the PCA and FCA Filings. If the proposed PCA and
FCA rate changes are approved as filed, the combined impact is an overall increase in
current billed revenue of $190.2 million, or 13.94 percent, for June 2023 through May
2024.
25. Attachment 1 to this Application is Idaho Power’s proposed IPUC No. 29,
Tariff No. 101, in both clean and legislative formats, which contains the tariff sheets
specifying the proposed Schedule 55 rates for providing retail electric service to its
customers in the state of Idaho for June 1, 2023, through May 31, 2024.
26. Attachment 2 to this Application contains a summary of revenue impact
showing the effect to each customer class of applying the Company’s proposed PCA
rates that collect $200.2 million more, from June 2023 through May 2024, than the PCA
rates currently in effect.

APPLICATION - 12
Rate Mitigation.
27. Due to the magnitude of the requested increase, Idaho Power considered
proposing rate mitigation measures as part of this filing. As detailed in the testimony of
Ms. Brady, it has not done so for several reasons. The Company believes that customer
interests are generally best served by matching cost recovery as closely as possible with
the period in which power supply costs are incurred. Additionally, mitigating rate impacts
by spreading recovery over multiple years creates the possibility that the deferred
collection will result in “rate pancaking” with potential future rate increases, essentially
deferring an increase in the current year to create an even larger increase in the future.
28. The Company’s decision to not propose any rate mitigation measures in this
filing is consistent with Commission precedent. In considering the use of rate mitigation
measures in prior PCA cases, the Commission has repeatedly declined to spread
recovery of amounts into subsequent years citing concerns surrounding rate pancaking,
appropriate matching of costs and recovery, and the overall intent of the PCA
mechanism.21
29. While the Company is not proposing any rate mitigation measures in this
filing, it is open to discussing these measures if the Commission determines they may be
appropriate.

21 See, e.g., In the Matter of the Application of Idaho Power Company for Authority to Implement Power
Cost Adjustment (PCA) Rates for Electric Service From May 16, 2002 Through May 15, 2003, Case No.
IPC-E-02-03, Order No. 29026, p. 15-16 (May 13, 2002); In the Matter of the Application of Idaho Power
Company for Authority to Implement Power Cost Adjustment (PCA) Rates for Electric Service From June
1, 2008 Through May 31, 2009, Case No. IPC-E-08-07, Order No. 30563, p. 6-7 (May 30, 2008); In the
Matter of the Application of Idaho Power Company for Authority to Implement Power Cost Adjustment
(PCA) Rates for Electric Service From June 1, 2009 Through May 31, 2010, Case No. IPC-E-09-11,
Order No. 30828, p. 10-11 (May 29, 2009); In the Matter of the Application of Idaho Power Company for
Authority to Implement Power Cost Adjustment (PCA) Rates for Electric Service from June 1, 2013
Through May 31, 2014, Case No. IPC-E-13-10, Order No. 32821, p. 10-11 (May 31, 2013).

APPLICATION - 13

IV. MODIFIED PROCEDURE
30. Idaho Power believes that a technical hearing is not necessary to consider
the issues presented herein and respectfully requests that this Application be processed
under Modified Procedure, i.e., by written submissions rather than by hearing. RP 201,
et seq. If, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony, including but limited to the Brady
Testimony filed contemporaneously herewith, and support the Application in such
hearing.
V. COMMUNICATIONS AND SERVICE OF PLEADINGS
31. In conformance with RP 125, this Application will be brought to the attention
of Idaho Power’s customers by means of a press release to media in the Company’s
service area and a customer notice distributed in customers’ bills, both of which
accompany this filing. The customer notice will be distributed over the course of the
Company’s current billing cycles, and additionally, to ensure that all customers are
notified in a timely manner and have sufficient time to submit comments, Idaho Power is
sending a direct mail postcard to a subset of customers that receive their bill toward the
end of the processing time for this case. As such, a bill insert and/or the direct mail
postcard will be mailed no later than May 20, 2023.
32. The Company has also prominently displayed its intent to file the PCA on
its website since March 15, 2023. Upon filing of this Application, this web graphic will link
directly to the PCA press release and bill insert. Idaho Power will also keep its
APPLICATION - 14
Application, testimony, and exhibits open for public inspection at its offices throughout the
state of Idaho. Idaho Power asserts that this notice procedure satisfies the Rules of
Procedure of this Commission; however, the Company will, in the alternative, bring the
Application to the attention of its affected customers through any other means directed by
this Commission.
33. Communications and service of pleadings with reference to this Application
should be sent to the following:
Megan Goicoechea Allen
Lisa D. Nordstrom
Regulatory Dockets
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
[e-mail]
[e-mail]
dockets idahopower.com
Matthew T. Larkin
Timothy E. Tatum
Jessi Brady
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
[e-mail]
[e-mail]
brad idahopower.com

VI. REQUEST FOR RELIEF
34. As discussed in greater detail above and in the Brady Testimony filed
contemporaneously herewith, Idaho Power respectfully requests that the Commission
issue an order approving an update to Schedule 55 based on the quantification of the
2023-2024 PCA, resulting in an overall increase to current billed revenue of approximately
$200.2 million to become effective June 1, 2023.
DATED at Boise, Idaho, this 14th day of April 2023.

________________________________
MEGAN GOICOECHEA ALLEN
Attorney for Idaho Power Company

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-12
IDAHO POWER COMPANY
ATTACHMENT 1
PROPOSED TARIFF
(CLEAN AND LEGISLATIVE)
Idaho Power Company Nineteenth Revised Sheet No. 55-1
Cancels
I.P.U.C. No. 29, Tariff No. 101 Eighteenth Revised Sheet No. 55-1
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 2023 1221 West Idaho Street, Boise, Idaho

SCHEDULE 55
POWER COST ADJUSTMENT

APPLICABILITY

This schedule is applicable to the electric energy delivered to all Idaho retail Customers served
under the Company’s schedules and Special Contracts listed within this schedule. These loads are
referred to as "firm" load for purposes of this schedule.

BASE POWER COST AND PROJECTED POWER COST

The Base Power Cost of the Company's rates, expressed in cents per kWh, is computed by
dividing the sum of the Company's power cost components by firm kWh sales. The power cost
components are segmented into three categories as described in the table below:

The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the power
cost components for the forecasted time period beginning April 1 each year and ending the following
March 31.

BALANCING ADJUSTMENT

The Balancing Adjustment is based upon the differences between previous Projected Power Cost
and the power costs actually incurred. The Balancing Adjustment is 1.2714 cents per kWh.

EARNINGS SHARING

Order Nos. 30978, 32424, 33149, and 34071 directed the Company to share a portion of its
earnings above a certain threshold with customers through the annual Power Cost Adjustment. The
Company’s 2022 earnings were not above the prescribed threshold resulting in a credit of 0.0000 cents
per kWh.

Idaho Power Company Thirteenth Revised Sheet No. 55-2
Cancels
I.P.U.C. No. 29, Tariff No. 101 Twelfth Revised Sheet No. 55-2
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 2023 1221 West Idaho Street, Boise, Idaho

SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)

POWER COST ADJUSTMENT

The Power Cost Adjustment (PCA) is the sum of: 1) 95 percent of the difference between the
Projected Power Costs in Category 1 and the Base Power Costs in Category 1; 2) 100 percent of the
difference between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2;
3) 100 percent of the difference between the Projected Power Costs in Category 3 and the Base Power
Costs in Category 3; 4) the Balancing Adjustment; and 5) Earnings Sharing. The following table calculates
the rates for Categories 1, 2 and 3.

The following table shows the determination of PCA rates for Categories 1, 2, and 3:

Category Description
Base
Power Cost
Projected
Power Cost Difference Sharing
% Rate
(¢ per kWh)
1
The sum of fuel
expense and purchased
power expense
(excluding purchases
from cogeneration and
small power producers),
less the sum of off-
system surplus sales
revenue and revenue
from market-based
special contract pricing.
1.0253 1.9919 0.9667 95% 0.9183
2
Purchased power
expense from
cogeneration and small
power producers.
0.8546 1.3953 0.5407 100% 0.5407
3 Demand response
incentive payments. 0.0752 0.0734 -0.0018 100% -0.0018
Total 1.9551 3.4606 1.5055 1.4572

Idaho Power Company Twelfth Revised Sheet No. 55-3
Cancels
I.P.U.C. No. 29, Tariff No. 101 Eleventh Revised Sheet No. 55-3
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 2023 1221 West Idaho Street, Boise, Idaho

SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)

The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules and
Special Contracts are shown below. The monthly Power Cost Adjustment applied to the per unit charges
of the nonmetered schedules is the monthly estimated usage times the cents per kWh rates shown below.

Schedule Category
Balancing
djustment
Earnings
Sharing
Total PCA
1 2 3
1 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
3 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
5 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
6 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
7 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
8 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
9S 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
9P 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
9T 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
15 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
19S 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
19P 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
19T 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
24 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
40 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
41 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
42 0.9183 0.5407 (0.0018) 1.2714 (0.0000) 2.7286
26 0.9183 0.5407 (0.0018) 1.2714 * 2.7286
29 0.9183 0.5407 (0.0018) 1.2714 * 2.7286
30 0.9183 0.5407 (0.0018) 1.2714 * 2.7286

* Earnings Sharing Credits are applied as monthly amounts per the table below.

Schedule Special Contract Monthly Credit
26 Micron ($0.00)
29 Simplot ($0.00)
30 DOE ($0.00)

EXPIRATION

The Power Cost Adjustment included on this schedule will expire May 31, 2024.
Idaho Power CompanyEighteenth Nineteenth Revised Sheet No. 55-1
Cancels
I.P.U.C. No. 29, Tariff No. 101 Seventeenth Eighteenth Revised Sheet No. 55-1
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 35428 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 15, 20223 1221 West Idaho Street, Boise, Idaho

SCHEDULE 55
POWER COST ADJUSTMENT

APPLICABILITY

This schedule is applicable to the electric energy delivered to all Idaho retail Customers served
under the Company’s schedules and Special Contracts listed within this schedule. These loads are
referred to as "firm" load for purposes of this schedule.

BASE POWER COST AND PROJECTED POWER COST

The Base Power Cost of the Company's rates, expressed in cents per kWh, is computed by
dividing the sum of the Company's power cost components by firm kWh sales. The power cost
components are segmented into three categories as described in the table below:

The Projected Power Cost is the Company estimate, expressed in cents per kWh, of the power
cost components for the forecasted time period beginning April 1 each year and ending the following
March 31.

BALANCING ADJUSTMENT

The Balancing Adjustment is based upon the differences between previous Projected Power Cost
and the power costs actually incurred. The Balancing Adjustment is 0.25791.2714 cents per kWh.

EARNINGS SHARING

Order Nos. 30978, 32424, 33149, and 34071 directed the Company to share a portion of its
earnings above a certain threshold with customers through the annual Power Cost Adjustment. The
Company’s 20212 earnings were not above the prescribed threshold resulting in a credit of 0.0038 0000
cents per kWh.

Idaho Power Company Twelfth Thirteenth Revised Sheet No. 55-2
Cancels
I.P.U.C. No. 29, Tariff No. 101Eleventh Twelfth Revised Sheet No. 55-2
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 35421 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 20223 1221 West Idaho Street, Boise, Idaho

SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)

POWER COST ADJUSTMENT

The Power Cost Adjustment (PCA) is the sum of: 1) 95 percent of the difference between the
Projected Power Costs in Category 1 and the Base Power Costs in Category 1; 2) 100 percent of the
difference between the Projected Power Costs in Category 2 and the Base Power Costs in Category 2;
3) 100 percent of the difference between the Projected Power Costs in Category 3 and the Base Power
Costs in Category 3; 4) the Balancing Adjustment; and 5) Earnings Sharing. The following table calculates
the rates for Categories 1, 2 and 3.

The following table shows the determination of PCA rates for Categories 1, 2, and 3:

Category Description
Base
Power Cost
Projected
Power Cost Difference Sharing
% Rate
(¢ per kWh)
1
The sum of fuel
expense and purchased
power expense
(excluding purchases
from cogeneration and
small power producers),
less the sum of off-
system surplus sales
revenue and revenue
from market-based
special contract pricing.
1.023453 1.71319919 0.68979667 95% 0.65529183
2
Purchased power
expense from
cogeneration and small
power producers.
0.853146 1.35493953 0.50185407 100% 0.50185407
3 Demand response
incentive payments. 0.07512 0.05410734 -
0.02090018 100% -0.02090018
Total 1.95169551 3.12214606 1.17055055 1.136064572

Idaho Power Company Eleventh Twelfth Revised Sheet No. 55-3
Cancels
I.P.U.C. No. 29, Tariff No. 101Tenth Eleventh Revised Sheet No. 55-3
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 35421 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 20223 1221 West Idaho Street, Boise, Idaho

SCHEDULE 55
POWER COST ADJUSTMENT
(Continued)

The monthly Power Cost Adjustment rates applied to the Energy rate of all metered schedules and
Special Contracts are shown below. The monthly Power Cost Adjustment applied to the per unit charges
of the nonmetered schedules is the monthly estimated usage times the cents per kWh rates shown below.

Schedule Category
Balancing
djustment
Earnings
Sharing
Total PCA
1 2 3
1
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00470000)
1.38932.7286
3
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00450000)
1.38952.7286
5
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00450000)
1.38952.7286
6
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00470000)
1.38932.7286
7
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00590000)
1.38812.7286
8
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00590000)
1.38812.7286
9S
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00350000)
1.39052.7286
9P
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00310000)
1.39092.7286
9T
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00350000)
1.39052.7286
15
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.01220000)
1.38182.7286
19S
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00350000)
1.39052.7286
19P
0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00270000)
1.39132.7286
19T 0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00250000) 1.39152.7286
24 0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.003800) 1.39022.7286
40 0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00420000) 1.38982.7286
41 0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00740000) 1.38662.7286
42 0.65529183 0.50185407 (0.02090018) 0.25791.2714 (0.00300000) 1.39102.7286
26 0.65529183 0.50185407 (0.02090018) 0.25791.2714 * 1.39402.7286
29 0.65529183 0.50185407 (0.02090018) 0.25791.2714 * 1.39402.7286
30 0.65529183 0.50185407 (0.02090018) 0.25791.2714 * 1.39402.7286

* Earnings Sharing Credits are applied as monthly amounts per the table below.

Schedule Special Contract Monthly Credit
26 Micron ($1,307.240.00)
29 Simplot ($328.560.00)
Idaho Power Company Eleventh Twelfth Revised Sheet No. 55-3
Cancels
I.P.U.C. No. 29, Tariff No. 101Tenth Eleventh Revised Sheet No. 55-3
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 35421 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 20223 1221 West Idaho Street, Boise, Idaho
30 DOE ($432.240.00)

EXPIRATION

The Power Cost Adjustment included on this schedule will expire May 31, 20234.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-12
IDAHO POWER COMPANY
ATTACHMENT 2
REVENUE IMPACT SUMMARY

Total Percent
Rate Average Normalized Current Adjustments Proposed Change
Line Sch. Number of Energy Billed Mills to Billed Total Billed Mills Billed to Billed
No Tariff Description No.Customers (kWh) Revenue Per kWh Revenue Revenue Per kWh Revenue

Uniform Tariff Rates:

1 Residential Service 1 494,984 5,417,241,908 $609,498,865 112.51 $72,553,085 $682,051,950 125.90 11.90%
2 Master Metered Mobile Home Park 3 19 4,486,942 $481,797 107.38 $60,082 $541,879 120.77 12.47%
3 Residential Service Energy Watch 4 0 0 $0 0.00 $0 $0 0.00 N/A
4 Residential Service Time-of-Day 5 986 16,988,817 $1,838,847 108.24 $227,496 $2,066,343 121.63 12.37%
5 Residential Service On-Site Generation 6 14,270 80,282,357 $9,487,053 118.17 $1,075,221 $10,562,274 131.56 11.33%
6 Small General Service 7 30,601 139,056,596 $19,205,888 138.12 $1,864,119 $21,070,007 151.52 9.71%
7 Small General Service On-Site Generation 8 93 212,550 $32,230 151.63 $2,849 $35,079 165.04 8.84%
8 Large General Service 9 38,308 3,951,263,560 $323,736,398 81.93 $52,870,473 $376,606,872 95.31 16.33%
9 Dusk to Dawn Lighting 15 0 5,267,423 $1,334,638 253.38 $70,942 $1,405,580 266.84 5.32%
10 Large Power Service 19 115 2,404,729,481 $160,046,753 66.55 $32,157,975 $192,204,727 79.93 20.09%
11 Agricultural Irrigation Service 24 19,271 1,865,582,190 $166,351,167 89.17 $24,969,643 $191,320,811 102.55 15.01%
12 Unmetered General Service 40 1,663 13,925,301 $1,337,823 96.07 $186,430 $1,524,253 109.46 13.94%
13 Street Lighting 41 2,980 23,760,014 $3,792,768 159.63 $318,869 $4,111,637 173.05 8.41%
14 Traffic Control Lighting 42 766 2,847,961 $205,225 72.06 $38,093 $243,318 85.44 18.56%
15 Total Uniform Tariffs 604,056 13,925,645,100 $1,297,349,452 93.16 $186,395,278 $1,483,744,731 106.55 14.37%

16 Total Special Contracts 3 1,136,579,568 $67,017,996 58.96 $13,836,732 $80,854,728 71.14 20.65%

17 Total Idaho Retail Sales 604,059 15,062,224,668 $1,364,367,448 90.58 $200,232,011 $1,564,599,459 103.88 14.68%
(1) June 01, 2023 - May 31, 2024 Forecasted Test Year (Spring 2023 Forecast) 4.7
(2) Percentage impact does not include components which are applied as percentages, Riders and Franchise Fees.
(3) Includes Clean Energy Your Way PPA Energy and Revenue

Idaho Power Company
Calculation of Revenue Impact 2023-2024
State of Idaho
PCA
Filed April 14, 2023
Summary of Revenue Impact
Current Billed Revenue to Proposed Billed Revenue

Percent
Rate Average Normalized Current Adjustments Proposed Change
Line Sch. Number of Energy Billed Mills to Billed Total Billed Mills Billed to Billed (2)
No Tariff Description No. Customers (1) (kWh) (1) Revenue Per kWh Revenue Revenue Per kWh Revenue

Uniform Tariff Rates:

1 Large General Secondary 9S 38,024 3,346,539,551 $278,708,353 83.28 $44,781,118 $323,489,471 96.66 16.07%
2 Large General Primary 9P 280 601,166,866 $44,742,355 74.43 $8,041,757 $52,784,112 87.80 17.97%
3 Large General Transmission 9T 4 3,557,143 $285,691 80.31 $47,598 $333,289 93.70 16.66%
4 Total Schedule 9 38,308 3,951,263,560 $323,736,398 81.93 $52,870,473 $376,606,872 95.31 16.33%

6 Large Power Secondary 19S 0 0 $0 0.00 $0 $0 0.00 0.00%
7 Large Power Primary 19P 113 2,371,527,573 $157,938,835 66.60 $31,714,024 $189,652,859 79.97 20.08%
8 Large Power Transmission 19T 2 33,201,908 $2,107,917 63.49 $443,951 $2,551,868 76.86 21.06%
9 Total Schedule 19 115 2,404,729,481 $160,046,753 66.55 $32,157,975 $192,204,727 79.93 20.09%

11 Irrigation Secondary 24S 19,271 1,865,582,190 $166,351,167 89.17 $24,969,643 $191,320,811 102.55 15.01%
12 Irrigation Transmission 24T 0 0 $0 0.00 $0 $0 0.00 0.00%
13 Total Schedule 24 19,271 1,865,582,190 $166,351,167 89.17 $24,969,643 $191,320,811 102.55 15.01%
(1) June 01, 2023 - May 31, 2024 Forecasted Test Year (Spring 2023 Forecast) 4.7
Filed April 14, 2023

Summary of Revenue Impact - Rates 9, 19, and 24 Distribution Level Detail
Current Billed Revenue to Proposed Billed Revenue
Idaho Power Company
Calculation of Revenue Impact 2023-2024
State of Idaho
PCA
Thank you for reading this notice.
We value your business.
©2023 Idaho Power
Printed on recycled paper.
31180-I-0223
Opportunities for Public Review
Idaho Power’s proposal is subject to public review
and approval by the IPUC. Copies of the application
are available to the public at the IPUC offices (11331
W. Chinden Blvd. Building 8, Suite 201-A, Boise, ID
83714), Idaho Power offices, or at idahopower.com
or puc.idaho.gov. Customers also may subscribe to
the IPUC’s RSS feed to receive periodic updates via
email about the case. Written comments regarding
Idaho Power’s proposal (Case No. IPC-E-23-12) may
be filed with the IPUC.
Idaho Power has filed the final piece of its annual
spring cost adjustments with the Idaho Public Utilities
Commission (IPUC). This year’s Power Cost Adjustment
(PCA) calls for a price increase as a result of higher
power costs related to natural gas and market prices,
lower than expected hydro generation and a limited
coal supply.
Neither Idaho Power nor its shareholders receive any
financial return from this filing, which is a request for
$200.23 million. The money collected is used solely to
recover expenses associated with annual fluctuations
in power supply costs.
Idaho Power previously filed the Fixed Cost
Adjustment (FCA) on March 15. If approved, the FCA
and PCA rate changes will take effect June 1. A typical
Idaho residential customer will see an overall monthly
increase of $11.06 — the combined impact of the
following two filings:
•
•
1 Includes lighting schedules; ² Includes special contracts;
³ Totals may not sum due to rounding
The PCA has two main components: a true-up
mechanism for power costs incurred the previous
year and an estimate of what energy will cost in the
coming year. The true-up brings last year’s anticipated
costs in balance with costs actually incurred the
previous April through March. The estimate reflects
Idaho Power’s anticipated fuel costs, purchased power
costs and customer benefits from sales of surplus
energy for the coming April through March.
The increase in this year’s PCA is primarily due to last
year’s actual power supply costs, which exceeded
the forecast, driven by lower-than-expected hydro
generation, high natural gas prices, high market prices
and a limited coal supply. This year’s PCA forecast
also reflects expected increased costs primarily due to
continued high natural gas and market prices and a
limited coal supply.
2023 RATE FILINGS
PERCENTAGE CHANGE FROM CURRENT BILLED REVENUE
Overall Percentage Impact Residential Small GeneralService
Large GeneralService1
LargePower2 Irrigation
POWER COST ADJUSMENT (PCA)
14.68%11.90%9.70%16.19%20.26%15.01%
FIXED COST ADJUSMENT (FCA)
-0.73%-1.56%-1.63%N/A N/A N/A
COMBINED IMPACT3
13.94%10.34%8.08%16.19%20.26%15.01%

2023 RATE FILINGS
PERCENTAGE CHANGE FROM CURRENT BILLED REVENUE
Overall Percentage Impact Residential Small GeneralService
Large GeneralService1
LargePower2 Irrigation
POWER COST ADJUSMENT (PCA)
14.68%11.90%9.70%16.19%20.26%15.01%
FIXED COST ADJUSMENT (FCA)
-0.73%-1.56%-1.63%N/A N/A N/A
COMBINED IMPACT3
13.94%10.34%8.08%16.19%20.26%15.01%
Idaho Power has fi led the fi nal piece of its annual spring cost
adjustments with the Idaho Public Utilities Commission (IPUC).
This year’s Power Cost Adjustment (PCA) calls for a price increase as
a result of higher power costs related to natural gas and market prices,
lower than expected hydro generation and a limited coal supply.
Neither Idaho Power nor its shareholders receive any fi nancial return
from this fi ling, which is a request for $200.23 million. The money
collected is used solely to recover expenses associated with annual
fl uctuations in power supply costs.
Idaho Power previously fi led the Fixed Cost Adjustment (FCA) on March
15. If approved, the FCA and PCA rate changes will take effect June 1.
A typical Idaho residential customer will see an overall monthly increase
of $11.06 — the combined impact of the following two fi lings:
•
•
Continued on reverse side
1 Includes lighting schedules; ² Includes special contracts;
³ Totals may not sum due to rounding
The PCA has two main components: a true-up
mechanism for power costs incurred the previous
year and an estimate of what energy will cost in the
coming year. The true-up brings last year’s anticipated
costs in balance with costs actually incurred the
previous April through March. The estimate refl ects
Idaho Power’s anticipated fuel costs, purchased power
costs and customer benefi ts from sales of surplus
energy for the coming April through March.
The increase in this year’s PCA is primarily due to last
year’s actual power supply costs, which exceeded the
Idaho Power
Files Annual
Power Cost Adjustment
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
PRE-SORTED STANDARD
U.S. POSTAGE
PAID
BOISE, ID
PERMIT NO. 679
Important Information:
Please Note: We want to ensure all of our customers
have suffi cient time to submit comments to the IPUC.
Because your bill is processed toward the end of the
IPUC’s review of our request, you will receive this
notifi cation twice: fi rst in this postcard and then in
an insert in your bill later this month.
Idaho Power Files Annual Power Cost Adjustment
Continued from reverse side
Thank you for reading this notice.
We value your business.
Opportunities for Public Review
Idaho Power’s proposal is subject to
public review and approval by the IPUC.
Copies of the application are available
to the public at the IPUC offi ces
(11331 W. Chinden Blvd. Building 8,
Suite 201-A, Boise, ID 83714), Idaho
Power offi ces, or at idahopower.com
or puc.idaho.gov. Customers also may
subscribe to the IPUC’s RSS feed to
receive periodic updates via email about
the case. Written comments regarding
Idaho Power’s proposal (Case No.
IPC-E-23-12) may be fi led with the IPUC.
forecast, driven by lower-than-expected
hydro generation, high natural gas prices,
high market prices and a limited coal
supply. This year’s PCA forecast also
refl ects expected increased costs primarily
due to continued high natural gas and
market prices and a limited coal supply.