HomeMy WebLinkAbout20240315IPC Direct Anderson.pdf
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION FOR ) CASE NO. IPC-E-24-10
AUTHORITY TO IMPLEMENT FIXED COST )
ADJUSTMENT (“FCA”) RATES FOR )
ELECTRIC SERVICE FROM JUNE 1, )
2024 THROUGH MAY 31, 2025. )
)
IDAHO POWER COMPANY
DIRECT TESTIMONY
OF
GRANT T. ANDERSON
RECEIVED
Friday, March 15, 2024 1:16PM
IDAHO PUBLIC
UTILITIES COMMISSION
ANDERSON, DI 2
Idaho Power Company
Q. Please state your name and business address. 1
A. My name is Grant T. Anderson. My business 2
address is 1221 West Idaho Street, Boise, Idaho 83702. 3
Q. By whom are you employed and in what capacity? 4
A. I am employed by Idaho Power Company (“Idaho 5
Power” or “Company”) as a Regulatory Consultant in the 6
Regulatory Affairs Department. 7
Q. Please describe your educational background. 8
A. In May of 2013, I received a Bachelor of 9
Science degree in Microbiology from Oregon State 10
University. In May of 2015, I earned a Master of Business 11
Administration degree from Boise State University. In 12
addition, I have attended the electric utility ratemaking 13
course The Basics: Practical Regulatory Training for the 14
Electric Industry, a course offered through New Mexico 15
State University’s Center for Public Utilities. 16
Q. Please describe your work experience with 17
Idaho Power. 18
A. In 2018, I was hired as a Regulatory Analyst 19
in the Company’s Regulatory Affairs Department. My primary 20
responsibilities as a Regulatory Analyst included 21
supporting the Company’s Commercial and Industrial customer 22
classes’ rate design and general support of tariff rules 23
and regulations. In 2021, I was promoted, and my 24
responsibilities expanded to include the development of 25
ANDERSON, DI 3
Idaho Power Company
complex cost-related studies and support of the Company’s 1
Residential and Small General Service and on-site 2
generation customer classes’ rate design. My current 3
responsibilities include supporting the Company’s class 4
cost-of-service activities, developing pricing for special 5
contract customers and other large load pricing analysis, 6
supporting the Company’s annual Fixed Cost Adjustment 7
(“FCA”) calculation, and serving as the Company witness. 8
Q. What is the purpose of your testimony? 9
A. The purpose of my testimony is to describe the 10
Company’s request to implement its annual FCA rates in 11
conformance with Idaho Public Utilities Commission 12
(“Commission”) Order No. 32505 (Case No. IPC-E-11-19), 13
which approved the FCA as a permanent rate mechanism for 14
the Residential and Small General Service customers, and 15
Order No. 35273 (Case No. IPC-E-21-39), which approved 16
modification of the FCA to institute separate fixed cost 17
tracking for Residential and Small General Service 18
customers added to the Company’s system effective January 19
1, 2022. 20
Q. What is the Company requesting in this case? 21
A. The Company is seeking authority to collect 22
the 2023 FCA deferral balance of $36,781,811 through its 23
proposed 2024-2025 FCA rates. If approved, the 2024–2025 24
FCA rates will result in an increase to annual billed 25
ANDERSON, DI 4
Idaho Power Company
revenue for the Residential and Small General Service 1
classes of $10,575,831, or 1.44 percent, effective June 1, 2
2024. 3
Q. How is your testimony organized? 4
A. My testimony will discuss four areas related 5
to the FCA mechanism and Schedule 54, Fixed Cost 6
Adjustment. First, I will discuss the need for the FCA 7
itself. Second, I will discuss how the FCA modification 8
approved by Order No. 35273 was incorporated in the 2023 9
FCA deferral balance. Third, I will provide an overview of 10
the FCA mechanics and describe how each component is 11
determined and how the 2023 FCA deferral amount was 12
calculated. Finally, I will discuss the calculation of the 13
proposed FCA rates to become effective June 1, 2024, 14
remaining in effect until May 31, 2025. 15
Q. Are you sponsoring any exhibits? 16
A. Yes. I am offering the following exhibits: 17
Exhibit Description 18
Exhibit No. 1 2023 FCA Monthly Report 19
Exhibit No. 2 2023 FCA Calculation 20
Exhibit No. 3 Monthly Customer Count and Billed Sales 21
Exhibit No. 4 2023 FCA – Jan 2023 to May 2024 22
Exhibit No. 5 Rate Determination and Cap 23
Exhibit No. 6 2023 FCA Bill Impact Summary 24
// 25
ANDERSON, DI 5
Idaho Power Company
I. PURPOSE OF THE FIXED COST ADJUSTMENT MECHANISM 1
Q. Why is the FCA mechanism necessary? 2
A. The existing two-part rate design for 3
Residential and Small General Service customers collects a 4
substantial portion of the classes’ fixed costs through the 5
volumetric energy rate. The FCA is a true-up mechanism that 6
“decouples,” or separates, billed energy sales from revenue 7
in order to remove the financial disincentive that exists 8
when the Company invests in Demand Side Management (“DSM”) 9
resources and activities. Under the FCA, rates for 10
Residential Service (Schedules 1, 3, 5, and 6) and Small 11
General Service (Schedule 7 and 8) customers are adjusted 12
annually to recover or refund the difference between a 13
Commission approved per-customer level of fixed cost 14
recovery and the level of fixed cost recovery that the 15
Company received based upon the actual billed energy sales 16
during the previous calendar year. 17
Q. What level of incremental annual energy 18
efficiency savings was achieved in 2023? 19
A. Idaho Power achieved 139,683 megawatt-hours 20
(“MWh”) of savings system-wide, which is enough energy to 21
power approximately 12,200 average homes a year in Idaho 22
Power’s service area and exceeded the economic technical 23
achievable potential energy efficiency target set in the 24
Company’s 2023 Integrated Resource Plan for the year 2023. 25
ANDERSON, DI 6
Idaho Power Company
These energy savings are more particularly described in the 1
2023 DSM Annual Report filed in Case No. IPC-E-24-11. 2
Q. Do claimed incremental DSM savings encompass 3
the entirety of energy savings customers experience from 4
Idaho Power’s DSM efforts? 5
A. No. First, it is important to recognize that 6
savings claimed in any given year continue to recur in 7
subsequent years through the life of the DSM measure. For 8
example, a measure installed in 2020 with a five-year 9
measure life continues to provide energy savings in 2023, 10
though those savings are not included in the 2023 claimed 11
savings reported in the Company’s 2023 DSM Annual Report. 12
Thus, the full impact of the Company’s DSM efforts is 13
better represented by the cumulative impact of historical 14
claimed savings whose measure life extends through 2023. 15
Second, the Company promotes significant customer 16
educational, outreach, and awareness activities as well as 17
promoting codes and standards and engaging in marketing 18
efforts, none of which are quantified or claimed as part of 19
Idaho Power’s annual DSM savings but are likely to result 20
in energy savings experienced by the customer and accruing 21
to Idaho Power’s electric system over time. 22
Q. Has the FCA mechanism been effective at 23
removing the financial disincentive that would otherwise be 24
ANDERSON, DI 7
Idaho Power Company
associated with Idaho Power pursuing all cost-effective 1
energy efficiency? 2
A. Yes. The FCA has been and continues to be an 3
effective mechanism that has positioned the Company to 4
continue to support energy efficiency resources while 5
maintaining a reasonable opportunity to recover its fixed 6
costs of serving Residential and Small General Service 7
customers. 8
II. 2023 FCA DEFERRAL 9
Q. Does determination of the 2023 FCA deferral 10
amount include the modification approved by the Commission 11
in Case No. IPC-E-21-39? 12
A. Yes. As part of determining the 2023 FCA 13
deferral, customers added to Idaho Power’s system starting 14
January 1, 2022, are considered “new” and have separate, 15
reduced fixed cost tracking, while the 2021 FCA customer 16
count constitutes the level of “existing” customers whose 17
fixed costs are tracked with then-existing FCA components. 18
These new and existing FCA components are described in more 19
detail later in my testimony. 20
Q. How was the existing customer count determined 21
in the calculation of the 2023 FCA deferral? 22
A. Consistent with the method approved by the 23
Commission in Order No. 35273, the existing customer count 24
was set at the 2021 average number of customers. The 25
ANDERSON, DI 8
Idaho Power Company
existing customer count will be updated when rates go into 1
effect following the Company’s most recent, applicable 2
general rate case. 3
Q. How was the new customer count determined in 4
the calculation of the 2023 FCA deferral? 5
A. Because the FCA is an annual mechanism based 6
on average customers for the entire year, new customers 7
were determined as the difference between 2021 average 8
customers and 2023 average customers. This method captures 9
customers added starting January 1, 2022, through December 10
31, 2023, to determine the annual average incremental or 11
“new” customer count. 12
Q. Is there a difference in FCA rates to recover 13
the FCA deferral between existing and new customers? 14
A. No. While determination of the 2023 FCA 15
deferral includes separate, reduced fixed cost tracking for 16
new customers, the 2023 FCA deferral is recovered through a 17
single FCA rate applicable to all Residential customers, 18
new and existing, and a single FCA rate applicable to all 19
Small General Service customers. 20
III. FCA DETERMINATION FOR CALENDAR YEAR 2023 21
Q. Please describe the FCA mechanism components 22
and how they are calculated. 23
ANDERSON, DI 9
Idaho Power Company
A. For both the Residential and Small General 1
Service classes, the FCA mechanism is the same. The formula 2
used to determine the FCA amount is: 3
FCA = (CUST X FCC) – (ACTUAL X FCE) 4
Where: 5
FCA = Fixed Cost Adjustment; 6
CUST = Average Number of Customers, by class; 7
FCC = Fixed Cost per Customer rate, by class; 8
ACTUAL = Actual Billed kilowatt-hours (“kWh”) 9
Energy Sales, by class; and 10
FCE = Fixed Cost per Energy rate, by class. 11
The FCA amount is the difference between the 12
Company’s level of “authorized fixed cost recovery” (CUST X 13
FCC) and the level of “actual fixed cost recovery” (ACTUAL 14
X FCE). The FCC and FCE are bifurcated for new and existing 15
customers, with new customer components labeled as “FCC-16
Dist” and “FCE-Dist.” 17
Q. What is the difference in fixed cost tracking 18
between new and existing customers, and what is the basis 19
for those costs? 20
A. For both new and existing customers, the basis 21
for fixed cost tracking is the same, the Company’s most 22
recent, applicable general rate case. For 2023, the most 23
recent, applicable general rate case was Case No. IPC-E-11-24
08. Existing customer FCC and FCE remain unchanged and 25
ANDERSON, DI 10
Idaho Power Company
represent fixed costs associated with the Company’s 1
generation-, transmission-, and distribution-related system 2
components. Starting with the 2022 deferral, for new 3
customers only, the distribution-related system cost 4
components are tracked by the FCA. Table 1 lists the FCA 5
cost components for new and existing customers. 6
Table 1 7
FCA Components – Existing and New Customers 8
Residential Small General Service
FCC (per Existing Customer) $650.63 $360.57
FCC-Dist. (per New Customer) $317.72 $256.29
FCE (per kWh Existing Customer) $0.051602 $0.068633
FCE-Dist. (per kWh New Customer) $0.025199 $0.048783
Q. Can the FCA deferral balance be either 9
positive or negative? 10
A. Yes. A positive FCA indicates the Company's 11
authorized level of fixed cost recovery is greater than the 12
level of fixed costs recovered through the energy rate, 13
which occurs when energy use per customer (“UPC”) has 14
decreased from when the FCA components were established. In 15
a similar fashion, a negative FCA indicates the Company's 16
authorized fixed cost recovery amount is less than the 17
fixed costs determined to have been recovered through the 18
energy rate and results in a refund to customers. 19
Q. Did the underlying cost basis for the FCC and 20
FCE rates used to determine the 2023 FCA deferral balance 21
change from prior years? 22
ANDERSON, DI 11
Idaho Power Company
A. No. The underlying cost basis for the FCC and 1
FCE rates used to calculate the 2023 FCA deferral balance 2
continued to be based on the level of fixed costs 3
established by the Commission in the Company’s most recent, 4
applicable general rate case (Case No. IPC-E-11-08) and can 5
be found in the Company’s tariff under Schedule 54, Fixed 6
Cost Adjustment effective through December 31, 2023. FCC-7
Dist and FCE-Dist rates are based on the same underling 8
general rate case data, but only represent distribution 9
system costs as previously noted, and were established as 10
part of the FCA modification filing, Case No. IPC-E-21-39. 11
Q. How is the authorized level of fixed cost 12
recovery derived? 13
A. The authorized level of fixed cost recovery is 14
the product of the applicable FCC and the average number of 15
customers, by new and existing customer, and by class. The 16
Company uses a prorated customer count based on the number 17
of active utility service agreements at the end of each 18
month. This approach applies the same methodology that was 19
used to determine customer counts in Case No. IPC-E-11-08. 20
The annual average customer count is derived by calculating 21
the average of the 12 monthly prorated customer counts. 22
Q. How is the actual level of fixed cost recovery 23
determined? 24
ANDERSON, DI 12
Idaho Power Company
A. In compliance with Order No. 33295, the actual 1
level of fixed cost recovery is the product of the 2
applicable FCE and the actual billed energy sales for the 3
calendar year, measured in kWh. 4
Q. How are billed energy sales allocated between 5
existing and new customers? 6
A. For each customer group, Residential and Small 7
General Service, total billed energy sales are divided by 8
average customer count to determine the UPC for the 9
customer group. The count of existing and new customers is 10
multiplied by the respective customer group UPC to allocate 11
the share of total billed energy sales on a pro rata basis 12
between existing and new customers. 13
Q. Does the Company compute a monthly FCA 14
deferral balance? 15
A. Yes. Although the FCA is an annual mechanism 16
that is ultimately calculated and determined using customer 17
counts and billed energy sales data for the entire calendar 18
year, a monthly FCA deferral balance is estimated and 19
recorded in the Company’s accounting records to maintain 20
compliance with Generally Accepted Accounting Principles. 21
Since 2009, the Company has reported the estimated monthly 22
FCA deferral balance in the monthly FCA Report provided to 23
the Commission. Exhibit No. 1 is a copy of the monthly FCA 24
Report for calendar year 2023 with year-end information. 25
ANDERSON, DI 13
Idaho Power Company
Q. Is it possible for the reported monthly FCA 1
deferral balance estimate to differ from the annual amount? 2
A. Yes. Because the monthly FCA deferral balance 3
is computed using monthly customer counts while the annual 4
FCA deferral balance is computed using the average customer 5
count for the year, the sum of the monthly calculations may 6
differ from the annual calculation. 7
Q. How is the reported monthly estimate adjusted 8
to align with the authorized annual amount? 9
A. At year-end, once the annual FCA amount is 10
determined, an adjustment is made to the sum of the 11
previously recorded 12 monthly estimates to align with the 12
annual FCA deferral balance. Because the annual customer 13
count is the average of the 12 monthly customer counts, it 14
is not available until year-end. 15
Q. What adjustment was made to the 2023 monthly 16
estimates to translate to the Company’s single year-end 17
2023 FCA deferral balance? 18
A. To align with the annual FCA amount to be 19
recorded in the Company’s 2023 financial records, an upward 20
adjustment of $180,774 was made for the Residential 21
customer classes, reflected as the sum of lines 6 and 11, 22
column O of Exhibit No. 1. An upward adjustment of $359 was 23
made for the Small General Service customer classes, 24
reflected as the sum of lines 25 and 30, column O of 25
ANDERSON, DI 14
Idaho Power Company
Exhibit No. 1. The total upward adjustment for both 1
customer classes is $181,133. 2
Q. What is the total amount of the FCA, not 3
including interest? 4
A. As shown in Exhibit No. 2, the total amount of 5
the FCA for the Residential and Small General Service 6
customer classes, not including interest, is $35,742,904. 7
The calculation of the FCA uses the average annual customer 8
count and the annual billed sales amount, which are 9
included in Exhibit No. 3. The calculated FCA deferral 10
balance for the Residential customer classes, not including 11
interest, is $34,481,933. This amount can be found in 12
Exhibit No. 1 when summing lines 6 and 11, column P, and in 13
Exhibit No. 2 on line 7, column D. 14
The calculated FCA deferral balance for the Small 15
General Service customer classes, not including interest, 16
is $1,260,971. This amount can be found in Exhibit No. 1 17
when summing lines 25 and 30, column P, and in Exhibit No. 18
2 on line 14, column D. 19
Q. What is the total amount of the 2023 FCA, 20
including interest, the Company is requesting to implement 21
in rates on June 1, 2024? 22
A. The total amount of the 2023 FCA the Company 23
is requesting to begin recovering in rates on June 1, 2024, 24
is $36,781,811.39, reflected on line 42, column W, of 25
ANDERSON, DI 15
Idaho Power Company
Exhibit No. 4. The FCA for the Residential classes is 1
$35,484,196.77 as reflected on line 20, column W, of 2
Exhibit No. 4. The FCA for the Small General Service 3
classes is $1,297,614.62 as reflected on line 39, column W, 4
of Exhibit No. 4. Exhibit No. 4 and Exhibit No. 1 both 5
contain the same information as the FCA Report sent to the 6
Commission each month; however, Exhibit No. 4 calculates 7
interest from January 2023 through May 2024 while Exhibit 8
No. 1 shows that information only for the 2023 calendar 9
year. 10
Q. What is the significance of these numbers with 11
respect to the Company’s recovery of its fixed costs? 12
A. Because the Residential and Small General 13
Service FCAs are positive numbers, the average UPC based on 14
actual billed sales for the year were lower than the level 15
established in Case No. IPC-E-11-08 for both Residential 16
and Small General Service customer classes. In accordance 17
with the approved mechanism, the Residential and Small 18
General Service classes will receive a rate adjustment to 19
allow for recovery of the fixed costs that were not 20
recovered through actual billed energy charges during the 21
year. 22
IV. CALCULATION OF THE 2024-2025 FCA RATE 23
Q. Please describe the calculation of the FCA 24
rates the Company is proposing to go into effect on June 1, 25
ANDERSON, DI 16
Idaho Power Company
2024. 1
A. The FCA rates the Company proposes to go into 2
effect on June 1, 2024, were calculated by taking the FCA 3
deferral balances for each of the customer classes 4
described above and dividing by the respective class energy 5
sales forecast for June 1, 2024, through May 31, 2025. The 6
June 1 through May 31 forecast is the same period that has 7
been used historically and is also used for the Power Cost 8
Adjustment mechanism. 9
Q. What has the Company determined the forecast 10
energy sales to be for both the Residential and Small 11
General Service classes? 12
A. The Company’s forecasted energy sales are 13
5,777,687,853 kWh for the Residential classes and 14
139,030,129 kWh for the Small General Service classes. The 15
forecasted energy sales are found in Exhibit No. 5. 16
Q. What are the corresponding FCA rates for the 17
Residential and Small General Service classes based on a 18
combined and equal FCA rate change, as defined in the 19
approved mechanism? 20
A. To recover the authorized level of fixed 21
costs, the FCA rate for the Residential classes would be 22
0.6182 cents per kWh and the corresponding rate for the 23
Small General Service classes would be 0.7638 cents per 24
ANDERSON, DI 17
Idaho Power Company
kWh. The calculation of these rates is also found in 1
Exhibit No. 5. 2
On page 9 of Order No. 32505, the Commission ordered 3
that the FCA deferral balance will continue to be recovered 4
or refunded equally between the Residential and Small 5
General Service customer classes. Because the Residential 6
and Small General Service classes reduced their energy 7
consumption per customer such that the Company under-8
collected its authorized level of fixed costs as 9
established in Case No. IPC-E-11-08, each class requires a 10
rate surcharge. 11
Q. What is the difference between the FCA 12
deferral balance currently in amortization and the proposed 13
FCA deferral balance to be collected through the FCA rate? 14
A. In this filing, the Company is proposing to 15
collect rates based on an FCA deferral balance of 16
$36,781,811 which is $11,716,736 more than the 2022 FCA 17
deferral balance of $25,065,075. The 2022 deferral balance 18
was approved in Order No. 35799, issued in Case No. IPC-E-19
23-09, with rates based on that balance effective for the 20
period June 1, 2023, through May 31, 2024. 21
Q. Considering the current FCA rates in effect, 22
what is the percentage change in billed revenue as measured 23
from total billed amounts currently recovered from 24
Residential and Small General Service classes? 25
ANDERSON, DI 18
Idaho Power Company
A. Because the 2023 FCA deferral balance is more 1
than the 2022 FCA deferral balance and annual sales for 2
June 2024 through May 31, 2025, are forecast to be slightly 3
lower than the same period in the prior year, the 2024–2025 4
FCA rates represent an annual increase of $10,575,831 or 5
1.44 percent, from current billed revenue for the affected 6
customer classes. The percentage change in billed revenue 7
is found in Exhibit No. 6. This proposed increase results 8
in an approximate $1.69 increase to the monthly bill of a 9
typical residential customer using 950 kWh per month. 10
Q. How will the Company incorporate the FCA 11
surcharges for the Residential and Small General Service 12
classes on customers’ bills? 13
A. The Company proposes to continue including the 14
FCA with the Fixed Cost Adjustment line item on Residential 15
and Small General Service customers’ bills. 16
V. CONCLUSION 17
Q. Please summarize the Company’s request in this 18
filing. 19
A. Idaho Power requests the Commission authorize 20
the Company to implement Fixed Cost Adjustment rates for 21
electric service from June 1, 2024, through May 31, 2025, 22
in the amount of 0.6182 cents per kWh for the Residential 23
classes, and 0.7638 cents per kWh for the Small General 24
Service classes. If approved, the 2024–2025 FCA rates will 25
ANDERSON, DI 19
Idaho Power Company
result in an increase to annual billed revenue for the 1
Residential and Small General Service classes of 2
$10,575,831 or 1.44 percent, effective June 1, 2024. 3
Q. Does this complete your testimony? 4
A. Yes, it does. 5
// 6
ANDERSON, DI 20
Idaho Power Company
DECLARATION OF GRANT T. ANDERSON 1
I, Grant T. Anderson, declare under penalty of 2
perjury under the laws of the state of Idaho: 3
1. My name is Grant T. Anderson. I am employed 4
by Idaho Power Company as a Regulatory Consultant in the 5
Regulatory Affairs Department and am competent to be a 6
witness in this proceeding. 7
2. On behalf of Idaho Power, I present this 8
pre-filed direct testimony and exhibits in this matter. 9
3. To the best of my knowledge, my pre-filed 10
direct testimony and exhibits are true and accurate. 11
I hereby declare that the above statement is true to 12
the best of my knowledge and belief, and that I understand 13
it is made for use as evidence before the Idaho Public 14
Utilities Commission and is subject to penalty for perjury. 15
SIGNED this 15th day of March 2024, at Boise, Idaho. 16
17
Signed: _________________________ 18
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-10
IDAHO POWER COMPANY
ANDERSON, DI
TESTIMONY
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A B C D E F G H I J K L M N O P
Fixed Cost Adjustment Monthly Report January February March April May June July August September October November December Adjustment Current Year Total
for the year ended December 31, 2023
Residential FCA (Existing Customers):
Beginning Balance $0.00 5,485,589.00 9,448,840.00 10,217,951.00 11,894,948.00 13,206,234.00 14,549,714.00 15,957,485.00 16,643,595.00 18,833,275.00 22,811,888.00 27,498,389.00 33,412,262.00
Amount Deferred $5,485,589.00 3,963,251.00 769,111.00 1,676,997.00 1,311,286.00 1,343,480.00 1,407,771.00 686,110.00 2,189,680.00 3,978,613.00 4,686,501.00 5,913,873.00 203,383.00 33,615,645.00
Ending Balance $ 5,485,589.00 9,448,840.00 10,217,951.00 11,894,948.00 13,206,234.00 14,549,714.00 15,957,485.00 16,643,595.00 18,833,275.00 22,811,888.00 27,498,389.00 33,412,262.00 33,615,645.00 33,615,645.00
Residential FCA (New Customers):
Beginning Balance $0.00 110,456.00 190,709.00 206,911.00 244,401.00 275,005.00 308,871.00 345,663.00 364,563.00 427,754.00 547,666.00 695,664.00 888,897.00
Amount Deferred $110,456.00 80,253.00 16,202.00 37,490.00 30,604.00 33,866.00 36,792.00 18,900.00 63,191.00 119,912.00 147,998.00 193,233.00 (22,609.00) 866,288.00
Ending Balance $110,456.00 190,709.00 206,911.00 244,401.00 275,005.00 308,871.00 345,663.00 364,563.00 427,754.00 547,666.00 695,664.00 888,897.00 866,288.00 866,288.00
Interest:
Accrual thru Prior Month $- - 9,328.61 25,397.74 42,775.98 63,012.27 85,485.50 110,254.76 137,432.11 165,784.71 197,892.85 236,833.23
Monthly Interest Rate (2023 Annual 2%, 2024 Annual 5%)0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667%
Monthly Interest Inc/(Exp)$- 9,328.61 16,069.13 17,378.24 20,236.29 22,473.23 24,769.26 27,177.35 28,352.60 32,108.14 38,940.38 46,999.49 - 283,832.72
Interest Accrued to date $- 9,328.61 25,397.74 42,775.98 63,012.27 85,485.50 110,254.76 137,432.11 165,784.71 197,892.85 236,833.23 283,832.72 - 283,832.72
Total Residential FCA:5,596,045.00 9,648,877.61 10,450,259.74 12,182,124.98 13,544,251.27 14,944,070.50 16,413,402.76 17,145,590.11 19,426,813.71 23,557,446.85 28,430,886.23 34,584,991.72 34,481,933.00 34,765,765.72
Small General Service FCA (Existing Customers):
Beginning Balance $118,124.00 198,210.00 256,534.00 367,397.00 427,210.00 534,086.00 665,270.00 721,684.00 837,659.00 973,814.00 1,089,358.00 1,252,980.00
Amount Deferred $118,124.00 80,086.00 58,324.00 110,863.00 59,813.00 106,876.00 131,184.00 56,414.00 115,975.00 136,155.00 115,544.00 163,622.00 766.00 1,253,746.00
Ending Balance $118,124.00 198,210.00 256,534.00 367,397.00 427,210.00 534,086.00 665,270.00 721,684.00 837,659.00 973,814.00 1,089,358.00 1,252,980.00 1,253,746.00 1,253,746.00
Small General Service FCA (New Customers):
Beginning Balance $819.00 936.00 1,457.00 1,761.00 1,765.00 3,113.00 3,310.00 3,639.00 4,232.00 5,170.00 5,966.00 7,632.00
Amount Deferred $819.00 117.00 521.00 304.00 4.00 1,348.00 197.00 329.00 593.00 938.00 796.00 1,666.00 (407.00) 7,225.00
Ending Balance $819.00 936.00 1,457.00 1,761.00 1,765.00 3,113.00 3,310.00 3,639.00 4,232.00 5,170.00 5,966.00 7,632.00 7,225.00 7,225.00
Interest:
Accrual thru Prior Month $- - 198.28 530.26 960.33 1,575.72 2,290.82 3,186.33 4,300.85 5,509.96 6,913.39 8,545.36 -
Monthly Interest Rate (2023 Annual 2%, 2024 Annual 5%)0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667%
Monthly Interest Inc/(Exp)$- 198.28 331.98 430.07 615.39 715.10 895.51 1,114.52 1,209.11 1,403.43 1,631.97 1,825.91 - 10,371.27
Interest Accrued to date $- 198.28 530.26 960.33 1,575.72 2,290.82 3,186.33 4,300.85 5,509.96 6,913.39 8,545.36 10,371.27 - 10,371.27
Total Small General Service FCA:118,943.00 199,344.28 258,521.26 370,118.33 430,550.72 539,489.82 671,766.33 729,623.85 847,400.96 985,897.39 1,103,869.36 1,270,983.27 1,260,971.00 1,271,342.27
Total Fixed Cost Adjustmen $ 5,714,988.00 9,848,221.89 10,708,781.00 12,552,243.31 13,974,801.99 15,483,560.32 17,085,169.09 17,875,213.96 20,274,214.67 24,543,344.24 29,534,755.59 35,855,974.99 35,742,904.00 36,037,107.99
Entries:
599 X00001 999 182302 (254302) 5,714,988.00 4,133,233.89 860,559.11 1,843,462.31 1,422,558.68 1,508,758.33 1,601,608.77 790,044.87 2,399,000.71 4,269,129.57 4,991,411.35 6,321,219.40 181,133.00 36,037,107.99
599 X00001 999 440301 (5,596,045.00) (4,043,504.00) (785,313.00) (1,714,487.00) (1,341,890.00) (1,377,346.00) (1,444,563.00) (705,010.00) (2,252,871.00) (4,098,525.00) (4,834,499.00) (6,107,106.00) (180,774.00) (34,481,933.00)
599 X00001 999 442301 (118,943.00) (80,203.00) (58,845.00) (111,167.00) (59,817.00) (108,224.00) (131,381.00) (56,743.00) (116,568.00) (137,093.00) (116,340.00) (165,288.00) (359.00) (1,260,971.00)
599 X00001 999 421006 (431013) - (9,526.89) (16,401.11) (17,808.31) (20,851.68) (23,188.33) (25,664.77) (28,291.87) (29,561.71) (33,511.57) (40,572.35) (48,825.40) - (294,203.99)
Exhibit No. 1 Case No. IPC-E-24-10 G. Anderson, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-10
IDAHO POWER COMPANY
ANDERSON, DI
TESTIMONY
EXHIBIT NO. 2
FIXED COST ADJUSTMENT 2023 FCA CALCULATION
Residential Service
(A) (B) (C) (D)
Row Line Description Existing New Total
(1) Customer Count 485,211 25,609 510,820
(2) (x) Fixed Cost per Customer (FCC)650.63$ 317.72$
(3)Authorized Recovery 315,692,755$ 8,136,516$ 323,829,271$
(4) Billed Sales (kWh) 5,466,398,784 288,512,559 5,754,911,343
(5) (x) Fixed Cost in Energy (FCE) 0.051602$ 0.025199$
(6)Actual Recovery 282,077,110$ 7,270,228$ 289,347,338$
(7)Residential FCA 33,615,645$ 866,288$ 34,481,933$
Small General Service
(A) (B) (C) (D)
Row Line Description Existing New Total
(8) Customer Count 29,605 240 29,845
(9) (x) Fixed Cost per Customer (FCC)360.57$ 256.29$
(10)Authorized Recovery 10,674,671$ 61,522$ 10,736,194$
(11) Billed Sales (kWh) 137,265,259 1,113,006 138,378,265
(12) (x) Fixed Cost in Energy (FCE) 0.068633$ 0.048783$
(13)Actual Recovery 9,420,927$ 54,296$ 9,475,222$
(14)Small General FCA 1,253,745$ 7,227$ 1,260,971$
(15)Total FCA 34,869,390$ 873,515$ 35,742,904$
Exhibit No. 2 Case No. IPC-E-24-10 G. Anderson, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-10
IDAHO POWER COMPANY
ANDERSON, DI
TESTIMONY
EXHIBIT NO. 3
FIXED COST ADJUSTMENT COUNT AND BILLED SALES
Residential Service Small General Service
(A)(B)(C)(D)
Customer Billed Customer Billed
Row Month Count Sales (kWh)Count Sales (kWh)
(1) January 505,218 625,279,034 29,894 14,433,671
(2) February 505,331 586,330,877 29,666 13,646,354
(3) March 506,142 560,378,916 29,977 12,670,229
(4) April 507,423 465,398,712 29,719 10,850,042
(5) May 508,401 384,013,210 29,608 9,801,424
(6) June 510,258 385,809,614 30,130 9,964,214
(7) July 511,179 456,777,267 29,668 10,911,190
(8) August 512,581 562,927,757 29,848 12,828,079
(9) September 513,885 469,569,339 29,818 11,431,129
(10) October 515,157 347,694,330 29,892 9,774,028
(11) November 516,588 388,012,690 29,892 9,916,434
(12) December 517,677 522,719,597 30,029 12,151,471
(13)Avera e Count/Total Sales 510,820 5,754,911,343 29,845 138,378,265
Exhibit No. 3 Case No. IPC-E-24-10 G. Anderson, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-10
IDAHO POWER COMPANY
ANDERSON, DI
TESTIMONY
EXHIBIT NO. 4
12
3
45
678
910
11
1213
14
1516
171819
2021
22
2324
25
2627
28
2930
313233
3435
36
3738
39
4041
42
45
4647
48
4950
5152
A B C D E F G H I J K L M N O P Q R S T U V W
Fixed Cost Adjustment Monthly Report January February March April May June July August September October November December Adjustment Current Year Total January February March April May Grand Total for the year ended December 31, 2023
Residential FCA (Existing Customers):Beginning Balance $0.00 5,485,589.00 9,448,840.00 10,217,951.00 11,894,948.00 13,206,234.00 14,549,714.00 15,957,485.00 16,643,595.00 18,833,275.00 22,811,888.00 27,498,389.00 33,412,262.00 33,615,645.00 33,615,645.00 33,615,645.00 33,615,645.00 33,615,645.00
Amount Deferred $5,485,589.00 3,963,251.00 769,111.00 1,676,997.00 1,311,286.00 1,343,480.00 1,407,771.00 686,110.00 2,189,680.00 3,978,613.00 4,686,501.00 5,913,873.00 203,383.00 33,615,645.00 ----- 33,615,645.00Ending Balance $ 5,485,589.00 9,448,840.00 10,217,951.00 11,894,948.00 13,206,234.00 14,549,714.00 15,957,485.00 16,643,595.00 18,833,275.00 22,811,888.00 27,498,389.00 33,412,262.00 33,615,645.00 33,615,645.00 33,615,645.00 33,615,645.00 33,615,645.00 33,615,645.00 33,615,645.00
Residential FCA (New Customers):Beginning Balance $0.00 110,456.00 190,709.00 206,911.00 244,401.00 275,005.00 308,871.00 345,663.00 364,563.00 427,754.00 547,666.00 695,664.00 888,897.00 866,288.00 866,288.00 866,288.00 866,288.00 866,288.00
Amount Deferred $110,456.00 80,253.00 16,202.00 37,490.00 30,604.00 33,866.00 36,792.00 18,900.00 63,191.00 119,912.00 147,998.00 193,233.00 (22,609.00)866,288.00 -----866,288.00
Ending Balance $110,456.00 190,709.00 206,911.00 244,401.00 275,005.00 308,871.00 345,663.00 364,563.00 427,754.00 547,666.00 695,664.00 888,897.00 866,288.00 866,288.00 866,288.00 866,288.00 866,288.00 866,288.00 866,288.00
Interest:
Accrual thru Prior Month $--9,328.61 25,397.74 42,775.98 63,012.27 85,485.50 110,254.76 137,432.11 165,784.71 197,892.85 236,833.23 283,832.72 427,518.93 571,205.14 714,891.35 858,577.56Monthly Interest Rate (2023 Annual 2%, 2024 Annual 5%)0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667%0.4167%0.4167%0.4167%0.4167% 0.4167%
Monthly Interest Inc/(Exp)$-9,328.61 16,069.13 17,378.24 20,236.29 22,473.23 24,769.26 27,177.35 28,352.60 32,108.14 38,940.38 46,999.49 -283,832.72 143,686.21 143,686.21 143,686.21 143,686.21 143,686.21 1,002,263.77Interest Accrued to date $-9,328.61 25,397.74 42,775.98 63,012.27 85,485.50 110,254.76 137,432.11 165,784.71 197,892.85 236,833.23 283,832.72 -283,832.72 427,518.93 571,205.14 714,891.35 858,577.56 1,002,263.77
Total Residential FCA:5,596,045.00 9,648,877.61 10,450,259.74 12,182,124.98 13,544,251.27 14,944,070.50 16,413,402.76 17,145,590.11 19,426,813.71 23,557,446.85 28,430,886.23 34,584,991.72 34,481,933.00 34,765,765.72 143,686.21 143,686.21 143,686.21 143,686.21 143,686.21 35,484,196.77
Small General Service FCA (Existing Customers):Beginning Balance $118,124.00 198,210.00 256,534.00 367,397.00 427,210.00 534,086.00 665,270.00 721,684.00 837,659.00 973,814.00 1,089,358.00 1,252,980.00 1,253,746.00 1,253,746.00 1,253,746.00 1,253,746.00 1,253,746.00
Amount Deferred $118,124.00 80,086.00 58,324.00 110,863.00 59,813.00 106,876.00 131,184.00 56,414.00 115,975.00 136,155.00 115,544.00 163,622.00 766.00 1,253,746.00 ----- 1,253,746.00
Ending Balance $118,124.00 198,210.00 256,534.00 367,397.00 427,210.00 534,086.00 665,270.00 721,684.00 837,659.00 973,814.00 1,089,358.00 1,252,980.00 1,253,746.00 1,253,746.00 1,253,746.00 1,253,746.00 1,253,746.00 1,253,746.00 1,253,746.00
Small General Service FCA (New Customers):
Beginning Balance $819.00 936.00 1,457.00 1,761.00 1,765.00 3,113.00 3,310.00 3,639.00 4,232.00 5,170.00 5,966.00 7,632.00 7,225.00 7,225.00 7,225.00 7,225.00 7,225.00Amount Deferred $819.00 117.00 521.00 304.00 4.00 1,348.00 197.00 329.00 593.00 938.00 796.00 1,666.00 (407.00)7,225.00 -----7,225.00
Ending Balance $819.00 936.00 1,457.00 1,761.00 1,765.00 3,113.00 3,310.00 3,639.00 4,232.00 5,170.00 5,966.00 7,632.00 7,225.00 7,225.00 7,225.00 7,225.00 7,225.00 7,225.00 7,225.00
Interest:
Accrual thru Prior Month $--198.28 530.26 960.33 1,575.72 2,290.82 3,186.33 4,300.85 5,509.96 6,913.39 8,545.36 -10,371.27 15,625.74 20,880.21 26,134.68 31,389.15Monthly Interest Rate (2023 Annual 2%, 2024 Annual 5%)0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667% 0.1667%0.4167%0.4167%0.4167%0.4167% 0.4167%
Monthly Interest Inc/(Exp)$-198.28 331.98 430.07 615.39 715.10 895.51 1,114.52 1,209.11 1,403.43 1,631.97 1,825.91 -10,371.27 5,254.47 5,254.47 5,254.47 5,254.47 5,254.47 36,643.62
Interest Accrued to date $-198.28 530.26 960.33 1,575.72 2,290.82 3,186.33 4,300.85 5,509.96 6,913.39 8,545.36 10,371.27 -10,371.27 15,625.74 20,880.21 26,134.68 31,389.15 36,643.62
Total Small General Service FCA:118,943.00 199,344.28 258,521.26 370,118.33 430,550.72 539,489.82 671,766.33 729,623.85 847,400.96 985,897.39 1,103,869.36 1,270,983.27 1,260,971.00 1,271,342.27 5,254.47 5,254.47 5,254.47 5,254.47 5,254.47 1,297,614.62
Total Fixed Cost Adjustment $ 5,714,988.00 9,848,221.89 10,708,781.00 12,552,243.31 13,974,801.99 15,483,560.32 17,085,169.09 17,875,213.96 20,274,214.67 24,543,344.24 29,534,755.59 35,855,974.99 35,742,904.00 36,037,107.99 148,940.68 148,940.68 148,940.68 148,940.68 148,940.68 36,781,811.39
Entries:
599 X00001 999 182302 (254302)5,714,988.00 4,133,233.89 860,559.11 1,843,462.31 1,422,558.68 1,508,758.33 1,601,608.77 790,044.87 2,399,000.71 4,269,129.57 4,991,411.35 6,321,219.40 181,133.00 36,037,107.99 148,940.68 148,940.68 148,940.68 148,940.68 148,940.68
599 X00001 999 440301 (5,596,045.00) (4,043,504.00) (785,313.00) (1,714,487.00) (1,341,890.00) (1,377,346.00) (1,444,563.00) (705,010.00) (2,252,871.00) (4,098,525.00) (4,834,499.00) (6,107,106.00) (180,774.00) (34,481,933.00)----- 599 X00001 999 442301 (118,943.00) (80,203.00) (58,845.00) (111,167.00) (59,817.00) (108,224.00) (131,381.00) (56,743.00) (116,568.00) (137,093.00) (116,340.00) (165,288.00) (359.00) (1,260,971.00)-----
599 X00001 999 421006 (431013)-(9,526.89) (16,401.11) (17,808.31) (20,851.68) (23,188.33) (25,664.77) (28,291.87) (29,561.71) (33,511.57) (40,572.35) (48,825.40)- (294,203.99) (148,940.68) (148,940.68) (148,940.68) (148,940.68) (148,940.68)
Exhibit No. 4 Case No. IPC-E-24-10 G. Anderson, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-10
IDAHO POWER COMPANY
ANDERSON, DI
TESTIMONY
EXHIBIT NO. 5
FIXED COST ADJUSTMENT RATE DETERMINATION
Calculation (A / C) (C x D) (E - A) (E / B)
Row Label (A) (B)(C)(D)(E)(F)(G)
Tar et FCA Normalize Base Percent Diff FCA Over/(Under) FCA
Customer T e Collection Ener Revenue from Base Collection Collection Rate
Residential Service 35,484,197$ 5,777,687,853 633,397,584$ 35,719,867$ 235,671$ 0.006182$
Small General Service 1,297,615 139,030,129 18,830,775 1,061,944 (235,671) 0.007638$
Total 36,781,811$ 5,916,717,982 652,228,360$ 5.64% 36,781,811$ -$
Proposed 2023 FCA Deferral Balance 36,781,811$
Existing FCA Balance per Order No. 35799 25,065,075
FCA Annual Increase/(Decrease) 11,716,736$
% of Base Revenue 1.80%
Exhibit No. 5 Case No. IPC-E-24-10 G. Anderson, IPC
Page 1 of 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-10
IDAHO POWER COMPANY
ANDERSON, DI
TESTIMONY
EXHIBIT NO. 6
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 1 502,357 5,582,403,703 $691,190,525 123.82 $9,936,679 $701,127,204 125.60 1.44%
2 Master Metered Mobile Home Park 3 19 5,177,497 $613,522 118.50 $9,216 $622,738 120.28 1.50%
3 Residential Service Time-of-Day 5 989 18,025,131 $2,147,357 119.13 $32,085 $2,179,442 120.91 1.49%
4 Residential Service On-Site Generation 6 18,601 172,081,522 $21,541,347 125.18 $306,305 $21,847,652 126.96 1.42%
521,966 5,777,687,853 $715,492,751 123.84 $10,284,284 $725,777,036 125.62 1.44%
5 Small General Service 7 30,614 138,530,041 $20,890,475 150.80 $290,497 $21,180,973 152.90 1.39%
6 Small General Service On-Site Generation 8 107 500,088 $74,134 148.24 $1,049 $75,183 150.34 1.41%
30,721 139,030,129 $20,964,610 150.79 $291,546 $21,256,156 152.89 1.39%
7 Total Residential and Small General Service 552,687 5,916,717,982 $736,457,361 124.47 $10,575,831 $747,033,191 126.26 1.44%
(1) June 01, 2024 - May 31, 2025 Forecasted Test Year (Spring 2024 Forecast)
Summary of Revenue Impact
Current Billed Revenue to Proposed Billed Revenue
Idaho Power Company
Calculation of Revenue Impact
State of Idaho
Fixed Cost Adjustment
Filed March 15, 2024
Exhibit No. 6 Case No. IPC-E-24-10 G. Anderson, IPC
Page 1 of 1