20231226Final_Order_No_36036.pdf

ORDER NO. 36036 1
Service Date December 26, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION TO IMPLEMENT THE RESIDENTIAL AND
SMALL FARM ENERGY CREDIT RATE EFFECTIVE JANUARY 1, 2024, THROUGH DECEMBER 31, 2025
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ORDER NO. 36036
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 (“Application”). The Company stated
that its 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
requested an effective date of January 1, 2024.
On November 20, 2023, the Commission issued a Notice of Application and Notice of
Modified Procedure setting public comment and Company reply deadlines. Order No. 36005.
Commission Staff (“Staff”) filed the only comments in this case.1 Having reviewed the
record, we now approve the Company’s Application.
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”). The 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

1 Staff also filed a corrected set of comments in this case to fix a typographical error.
ORDER NO. 36036 2
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
(through the approval of the credit rate) that would be effective from January 1, 2022, through
December 31, 2023.
THE APPLICATION
The Company proposed to implement a rate credit of 0.3447 cents 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 to eligible Idaho customers by $6,433,850.
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 fiscal year 2022-2023 exchange period when
eligible customers received $19,954,079.
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.
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.
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.
STAFF COMMENTS
Staff reviewed BPA’s fiscal year 2024-2025 Final Average System Cost Report as well as
the Company’s Application. Staff also audited the initial inputs and performed its own calculation
of the appropriate BPA Residential and Small Farm Credit rate. Staff believed that the Company
correctly calculated the 0.3447 cents per kWh rate based on an Idaho jurisdictional annual
allocation of REP benefits of $22,903,010. This is a total annual increase of $2,948,931 when
compared to the fiscal year 2022-2023 exchange period.
ORDER NO. 36036 3
Staff also believed that the Company proposal of notifying its customers in a bill message
complied with the requirements of IDAPA 31.01.01.125. For the reasons stated above, Staff
recommended approval of the Company’s proposed rate of 0.3447 cents per kWh.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503. The Commission has reviewed the record, including the Application and
Staff’s comments.
We find that the proposed rate credit of 0.3447 cents per kWh is just and reasonable. We
therefore approve the Application and the Schedule 98 rate credit for Schedules 1, 3, 5, 6, 7, 8, 9,
15, and 24 effective January 1, 2024, through December 31, 2025.
ORDER
IT IS HEREBY ORDERED that the Company’s Application to implement the Schedule
98 rate credit is approved for schedules 1, 3, 5, 6, 7, 8, 9, 15, and 24. The Company is authorized
to implement its proposed credit rate of 0.3447 cents per kWh effective January 1, 2024, through
December 31, 2025.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
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ORDER NO. 36036 4
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 26th day of
December 2023.

__________________________________________ ERIC ANDERSON, PRESIDENT

__________________________________________ JOHN R. HAMMOND JR., COMMISSIONER

__________________________________________ EDWARD LODGE, COMMISSIONER ATTEST:

__________________________________ Monica Barrios-Sanchez Interim Commission Secretary

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