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HomeMy WebLinkAbout20230714Errata to the Application.pdf MEGAN GOICOECHEA ALLEN Corporate Counsel mgoicoecheaallen@idahopower.com July 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-23-18 Application for Approval of Special Contract and Tariff Schedule 34 to Provide Electric Service to Lamb Weston, Inc. Dear Ms. Noriyuki: Attached for electronic filing is Idaho Power Company’s Errata to the Application in the above-entitled matter. 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 JULY 14, 2023 2:02PM IDAHO PUBLIC UTILITIES COMMISSION ERRATA TO 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: (208) 388-2664 Facsimile: (208) 388-6936 mgoicoecheaallen@idahopower.com lnordstrom@idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR APPROVAL OF SPECIAL CONTRACT AND TARIFF SCHEDULE 34 TO PROVIDE ELECTRIC SERVICE TO LAMB WESTON, INC. ) ) ) ) ) ) CASE NO. IPC-E-23-18 ERRATA TO APPLICATION Idaho Power Company (“Idaho Power” or “Company”) hereby respectfully submits to the Idaho Public Utilities Commission (“Commission”) this Errata to the Company’s Application for approval of Special Contract and Tariff Schedule 34 to provide electric service to Lamb Weston, Inc. filed on May 23, 2023, to correct the record as follows. 1. In the process of preparing Responses to Staff’s First Production Request in this case, the Company became aware of an error in derivation of the tariff Schedule 34 Block 2 Monthly Billing Demand Charge included with the Company’s Application,1 1 Attachment 2, Original Sheet No. 34-4. ERRATA TO APPLICATION - 2 which was due to the failure to update an input to the class cost-of-service (“CCOS”) methodology utilized in derivation of Lamb Weston’s embedded cost components for their Special Contract rates. 2. Specifically, Lamb Weston’s Block 2 Energy Charge, $0.058694 per kilowatt hour (“kWh”), was not included in Block 2 pricing derivation. Rather, the Company’s file contained an incorrect Block 2 Energy Charge value of $0.043352 per kWh, which had been included in a previous version of the file and incorrectly remained in the CCOS model that informed the rates contained in the filing. The result was a proposed Block 2 Monthly Billing Demand Charge of $12.67 per kilowatt (“kW”). The correct Block 2 Monthly Billing Demand Charge is $14.62 per kW when the final, $0.58694 per kWh Block 2 Energy Charge is included the CCOS model. 3. Because the CCOS methodology used to develop Lamb Weston’s Block 2 pricing classifies power supply expense as both energy- and capacity-related, the energy rate impacts the Block 2 Monthly Billing Demand Charge. 4. Once the error was identified, the Company provided a description of the error, and a CCOS version for the corrected $14.62 per kW Block 2 Monthly Billing Demand Charge as part of the Company’s Response to Staff’s First Production Request, filed on July 7, 2023. 5. The Response to Staff’s First Production Request also described Idaho Power’s intent to file an Errata to the Application by July 14, 2023, providing the Company time to communicate the error to Lamb Weston prior to filing the errata. Idaho Power met with Lamb Weston on July 11, 2023, describing the issue, and the corrected $14.62 per kW Block 2 Monthly Billing Demand Charge to be included in Schedule 34. ERRATA TO APPLICATION - 3 As a result, the Company has updated Schedule 34 to incorporate the corrected $14.62 per kW Block 2 Monthly Billing Demand Charge, which it is providing with this Errata as Revised Attachment 2 for the purpose of replacing Attachment 2 included with the Company’s Application filed on May 23, 2023.This update does not change anything else about the Application. DATED at Boise, Idaho, this 14th day of July 2023. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company ERRATA TO APPLICATION - 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 14th day of July 2023, I served a true and correct copy of Idaho Power Company’s Errata to Application upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Michael Duval Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg No. 8 Suite 201-A (83714) PO Box 83720 Boise, ID 83720-0074 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email Michael.Duval@puc.idaho.gov Stacy Gust, Regulatory Administrative Assistant Idaho Power Company I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 34-4 IDAHO Issued by IDAHO POWER COMPANY Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs Effective 1221 West Idaho Street, Boise, Idaho SCHEDULE 34 IDAHO POWER COMPANY ELECTRIC SERVICE RATE FOR LAMB WESTON, INC. (Continued) BLOCK 2 MONTHLY CHARGE The Monthly Charge is the sum of the following charges, and may also include charges as set forth in Schedule 91 (Energy Efficiency Rider), and Schedule 95 (Adjustment for Municipal Franchise Fees). Daily Excess Demand Charge $1.244 per each kW over the Contract Demand. Monthly Contract Demand Charge $3.11 per kW of Contract Demand. Monthly Billing Demand Charge $14.62 per kW of Billing Demand but not less than Minimum Monthly Billing Demand. Energy Charge $0.058694 per kWh of Block 2 Energy. Minimum Monthly Billing Demand The Minimum Monthly Billing Demand will be 20,000 kilowatts. Idaho Power Company I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 34-4 IDAHO Issued by IDAHO POWER COMPANY Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs Effective 1221 West Idaho Street, Boise, Idaho SCHEDULE 34 IDAHO POWER COMPANY ELECTRIC SERVICE RATE FOR LAMB WESTON, INC. (Continued) BLOCK 2 MONTHLY CHARGE The Monthly Charge is the sum of the following charges, and may also include charges as set forth in Schedule 91 (Energy Efficiency Rider), and Schedule 95 (Adjustment for Municipal Franchise Fees). Daily Excess Demand Charge $1.244 per each kW over the Contract Demand. Monthly Contract Demand Charge $3.11 per kW of Contract Demand. Monthly Billing Demand Charge $12.6714.62 per kW of Billing Demand but not less than Minimum Monthly Billing Demand. Energy Charge $0.058694 per kWh of Block 2 Energy. Minimum Monthly Billing Demand The Minimum Monthly Billing Demand will be 20,000 kilowatts.