20180413Decision Memo - Idaho Power.pdf

DECTSION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
DATE: APRIL 13,2018
SUBJECT:PROPOSED SETTLEMENT REGARDING IDAHO POWER COMPANY
IN THE COMMISSION'S INVESTIGATION INTO THE IMPACT OF
FEDERAL TAX CODE REVISIONS ON UTILITY COSTS AND
RATEMAKING - CASE NO. GNR.U-18.01.
On April 12,2018, Idaho Power Company filed a Settlement Stipulation and Motion
to Approve Settlement Stipulation (the Stipulation). The Stipulation is signed by the Company,
Commission Staff, and the Industrial Customers of Idaho Power (the only intervenor who
expressed interest in participating in the Idaho Power settlement, as required by Order No. 33991).
If approved, the Stipulation would provide a total customer benefit of $33,915,408 from June l,
2018 through May 3l,2}lg,consisting of $26,497,560 in decreased rates and a$7,477,848 offset
to current and future regulatory deferrals. The customer benehts result from the U.S. Tax Cuts
and Jobs Act, and would provide some form of direct rate reduction until the Company's next
general rate case proceeding or until otherwise modified by the Commission. The Stipulation
would also extend the Accumulated Deferred Income Tax Credit ("ADITC")/Revenue Sharing
mechanism.l
Some of the stipulated benefits would pass to customers through the Power Cost
Adjustment, which is proposed to take effect on June 1,2018. Accordingly, the parties ask the
Commission to process the Stipulation by Modified Procedure in time for an approving order to
issue by that date. Staff suggests a 2l -day comment period and 7 -day reply period would suffice.
I Order Nos. 30978, 32424, and 33149 established an ADITC/Revenue Sharing mechanism that authorizes
Idaho Power to amortize ADITC when earning below a certain Return on Equity ("ROE") threshold or share a portion
of revenues with Idaho customers when earnings are above a ceftain ROE threshold.
DECISION MEMORANDUM 1
COMMISSION DECISION
Does the Commission wish to issue a Notice of Proposed Settlement and Notice of
Modified Procedure setting a2|-day comment period andT-day reply period relating to the Idaho
Power Stipulation?u
Karl T. Klein
Deputy Attorney General
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2DECISION MEMORANDUM