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HomeMy WebLinkAbout20231120Notice_of_Application_Order_No_36005.pdfNOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36005 1 Office of the Secretary Service Date November 20, 2023 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION TO IMPLEMENT THE RESIDENTIAL AND SMALL FARM CREDIT RATE EFFECTIVE JANUARY 1, 2024, THROUGH DECEMBER 31, 2025 ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-28 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36005 On October 25, 2023, Idaho Power Company (“Company”) applied for authorization to implement the Bonneville Power Administration’s (“BPA”) residential and small farm energy rate credit from January 1, 2024, through December 31, 2025. The Company’s proposed credit rate would result in an increase of $6,433,850 to eligible customers in Idaho. The Company asked that its Application be processed under Modified Procedure and requests an effective date of January 1, 2024. The Commission now issues this Notice of Application and Notice of Modified Procedure establishing public comment and Company reply deadlines. BACKGROUND Under the Pacific Northwest Electric Power and Conservation Act, BPA is permitted to exchange power with investor-owned utilities (“IOUs”), like the Company, for lower-cost power generated by BPA via a Residential Exchange Program (“REP”). After litigation, a REP Settlement Implementation Agreement was reached (“Settlement”). This Settlement outlines the Company’s REP benefits through September 30, 2028. Certain benefits of these transactions are passed to qualifying residential and small farm customers in participating Northwestern IOUs. Schedule 98’s rate is currently set at $0.002534 per kilowatt-hour (“kWh”). The Settlement bases compensation on a utility’s Average System Cost (“ASC”) when compared against BPA’s Priority Firm Exchange rate and “a two-year average of the utility’s historical eligible residential and small farm loads.” Application at 3. This benefit is reviewed and administered by BPA every two years. Accordingly, the Company’s qualifying customers received $19,954,079 a year for both 2022 and 2023. In Order No. 35269, the Commission approved a decrease in Schedule 98’s rate NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36005 2 (through the approval of the credit rate) that would be effective from January 1, 2022, through December 31, 2023. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company proposed to implement a rate credit of $0.003447 per kWh—which represents the Company’s Idaho portion of benefits from the BPA REP. The Company noted that its proposal would increase the credit rate by $6,433,850 “to eligible customers in Idaho as compared to the BPA fiscal year 2022-2023 period” credit. Id. at 1. YOU ARE FURTHER NOTIFIED that the Company stated that BPA’s ASC for the exchange period of October 2023 through September 2025 is $66.03 per megawatt-hour (“MWh”). Because this amount is $3.20 per MWh more than BPA’s Priority Firm Exchange Rate, the Company’s Idaho and Oregon qualifying customers may receive $22,903,010 per year for the subsequent exchange period—a $2,948,931 increase per year when compared to the previous exchange period. YOU ARE FURTHER NOTIFIED that the Company stated that credits would be applied monthly to its qualifying (non-irrigation) customers starting on January 1, 2024. However, the benefits for the Company’s qualifying irrigation customers would accumulate monthly but be collectively discharged to customers on a yearly basis in December. YOU ARE FURTHER NOTIFIED that the proposed credit rate would apply to customers in rate Schedules 1, 3, 5, 6, 7, 8, 9, 15, and 24 effective January 1, 2024, through December 31, 2025. YOU ARE FURTHER NOTIFIED that the Company indicated it will notify customers about the Application via bill message in compliance with IDAPA 31.01.01.125 after approval by the Commission. YOU ARE FURTHER NOTIFIED that the Application has been filed with the Commission and is available for public inspection during regular business hours at the Commission’s office. The Application is 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. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36005 3 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. 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 Application. Persons who would like a hearing must specifically request a hearing in their written comments. Persons interested in filing written comments must do so within 21 days of the service date of this Order. Comments must be filed through the Commission’s 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 Commission Secretary and 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: Lisa D. Nordstrom Connie Aschenbrenner 1221 W. Idaho Street (83702) P.O. Box 70 Boise, ID 83707 lnordstrom@idahopower.com caschenbrenner@idahopower.com dockets@idahopower.com energycontracts@idahopower.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments within 28 days of the service date of this Order. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36005 4 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 the Application be processed by Modified Procedure. Persons interested in submitting written comments must do so within 21 days of the service date of this Order. The Company must file any reply comments within 28 days of the service date of this Order. 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 20th day of November 2023. __________________________________________ ERIC ANDERSON, PRESIDENT __________________________________________ JOHN R. HAMMOND JR., COMMISSIONER __________________________________________ EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\IPC-E-23-28\orders\IPCE2328_Ntc_App_Mod_md.docx