20240207Notice_of_Application_Order_No_36080.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36080 1

Office of the Secretary
Service Date
February 7, 2024

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On January 18, 2024, Commission Staff (“Staff”) applied to the Commission requesting
that the Commission update inputs to the surrogate avoided resource method (“SAR Method”)
model used by the Commission to calculate Idaho Power Company’s (“Company’s”) published
avoided cost rates for qualifying cogeneration and small power production facilities under
applicable resource-specific caps (“Application”). The Application was triggered by the update of
the cost of capital from the Company’s most recent general rate case (Case No. IPC-E-23-11).
Staff requested the proposed published avoided cost rates be retroactively effective January 1,
2024.
The Commission now sets deadlines for interested persons to comment on the Application
and for Staff to reply.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Application states that it has been filed in
accordance with the Public Utility Regulatory Policies Act of 1978 and Federal Energy Regulatory
Commission regulations.
YOU ARE FURTHER NOTIFIED that Staff stated that the Company had a capital
structure of 49.27% common equity and 50.73% long-term debt. This capital structure was used
in the Company’s SAR Model as approved in Order No. 30722 in Case No. IPC-E-08-10.
YOU ARE FURTHER NOTIFIED that Staff stated that the Company’s cost of debt and
return on equity are 4.96% and 9.6% respectively. Staff updated the Company’s weighted cost of
capital accordingly.
YOU ARE FURTHER NOTIFIED that Staff updated several inputs to the Company’s
SAR Model.
IN THE MATTER OF COMMISSION
STAFF’S APPLICATION TO UPDATE
IDAHO POWER COMPANY’S COST OF
CAPITAL INPUTS IN THE SURROGATE
AVOIDED RESOURCE
METHODOLOGY
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CASE NO. IPC-E-24-04

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 36080
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36080 2

YOU ARE FURTHER NOTIFIED that supplemental materials were filed concurrently
with the Company’s Application including (1) an updated SAR Model; (2) Avoided Cost Rates
for new contracts; and (3) Avoided Cost Rates for renewal contracts.
YOU ARE FURTHER NOTIFIED that the Application and supplemental materials are
available for public inspection during regular business hours at the Commission’s office. These
documents are also available on the Commission’s website at www.puc.idaho.gov. Click on the
“ELECTRIC” icon, select “Open Cases,” and 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 people 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, including the Company, must do
so within twenty-one (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 website 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 comment to the Commission
Secretary and the Commission Staff at the e-mail addresses listed below. If computer access is
unavailable, then comments may be mailed to the Commission Secretary and the Commission
Staff at the following addresses:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36080 3

YOU ARE FURTHER NOTIFIED that Commission Staff must file any reply comments
within twenty-eight (28) days of the service date of this Order.
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 Application be processed by Modified Procedure.
Persons interested in submitting written comments, including the Company, must do so within
twenty-one (21) days of the service date of this Order. Commission Staff must file any reply
comments within twenty-eight (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.
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For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714

For Commission Staff:

Michael Duval
Deputy Attorney General
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83702-0074
[e-mail]

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36080 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 7th day of
February 2024.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

________________________________
Monica Barrios-Sanchez
Commission Secretary

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