20180216Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 15,2018
SUBJECT:IN THE MATTER OF THE INVESTIGATION INTO THE IMPACT OF
FEDERAL TAX CODE REVISIONS ON UTILITY COSTS AND
RATEMAKING - CASE NO. GNR.U.18.O1.
Staff expects to engage in settlement negotiations with some utilities that are parties to
this multi-utility case. Staff wants to ensure all interested persons and utilities can participate in
any negotiations that interest them. Staff thus recommends the Commission order that interested
parties and utilities file one of the following two documents with the Commission as soon as
practical, and no later than March 6,2018. First, interested persons must file a Petition to Intervene
with the Commission that names each rate-regulated utility in whose negotiations the person wants
an opportunity to participate. Second, rate-regulated utilities (besides small water companies with
less than 200 customers, and Atlanta Power) must file a Request for Settlement Notification that
names each other rate-regulated utility in whose negotiations they want an opportunity to
participate.
BACKGROUND
The federal Tax Cuts and Jobs Act of 2017 decreased the federal corporate tax rate
from 35%o lo2lYo, effective January 1,2018. In response, the Commission opened this case to
investigate whether to adjust utilities' rates so the benefits from the reduced tax rate flow through
to customers. This multi-utility case involves all rate-regulated utilities in Idaho, except for small
water companies with less than 200 customers, and the small electric utility, Atlanta Power. See
Order No. 33965.
In its order, the Commission directed all affected utilities to immediately account for
the tax benefits as a regulatory liability. The utilities are to file a report on the effect of the tax
changes, and proposed tariffs, by March 30,2018. See id. at l-2 (detailing what a utility's filing
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must include). The Commission's Staff then has 60 days to use reasonable efforts to audit the
utilities and report the audit results to the Commission. Id. at 2. If the Staff disagrees with the
proposed tariffs, the Commission would order the utility to show cause why Staff s recommended
changes should not be made. Id.
As of February 15,2018, two utilities have filed the Commission-ordered reports, and
one entity, the Industrial Customers of Idaho Power (ICIP), has petitioned to intervene.
STAFF RECOMMENDATION
This case involves every rate-regulated utility in the state (except small water
companies and Atlanta Power). These utilities provide different types of service to different
customers in different areas. Staff expects not all customers and utilities will want to participate
in Staff s settlement negotiations with other rate-regulated utilities.l To ensure Staff knows what
parties to notify about settlement negotiations between Staff and a particular utility, and to help
process this multi-utility case more efficiently, Staff recommends the Commission issue an order
setting the following procedure: First, interested persons must file a Petition to Intervene with the
Commission that names each rate-regulated utility in whose negotiations the person wants an
opportunity to participate. Second, rate-regulated utilities (besides small water companies with
less than 200 customers, and Atlanta Power) must file a Request for Settlement Notification that
names each other rate-regulated utility in whose negotiations they want an opportunity to
participate. Staff recommends the Commission direct these petitions and notices be filed as soon
as practical, no later than Tuesday, March 6,2018.
COMMISSION DECISION
Does the Commission wish to issue an order that directs persons to file a Petition to
Interevene, and rate-regulated utilities to file a Request for Settlement Notification, as soon as
practical, and no later than Tuesday, March 6,2018, as described above?
Karl T. Klein
Deputy Attorney General
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I For example, ICIP, the sole intervenor to date, has waived service of all process including pleadings, documents
and any other papers in this matter that are not relevant to the Idaho Power Company in an effort to "limit service
upon the ICIP to just those pleadings that impact. . . Idaho Power's electric rates and cost of service." See Notice of
Waiver of Service.
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