20201231Idaho Power Deferred Accounting Report - Redacted.pdf

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An f,TACORP Company
LISA D. NORDSTROTII
Lead Courpel
lnordttsom0ida hooomr.com
December 31, 2020
VIA ENCRYPTED ELEGTRONE MAIL
Jan Noilyuki, Secretary
ldaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg 8,
Suite 201-A(83714)
PO Box 83720
Boise, ldaho 83720-0074
Re: Case No. GNR-U-20-03
ln the Matter of Defened Acmunting of lncremental Costs Associated
\Mth the COVID-I9 Public Health Emergency
Dear Ms. Noriyuki:
Attached for electronic filing, pursuant to Order No. 34718, is ldaho Power
Company's Defened Accounting of Incremental Costs - Report on GOVID19 Expenses.
Please note that the rcdac'ted portions of the enclosure contain commercially
sensitive and potentially material non-public information under Regulation FD. The
undersigned attomey, in accordancewith RP67, hereby certifiesthatthe rcdacted portions
of the ldaho Power Company DeGned Accounting of lncremental Costs - Report on
COVID-19 Expenses contain inbrmation that is a trade secret as describedin ldaho Codc
S 74-101, et seq., and $ 48-801, et seq., and as such is exempt from public inspection,
examination, or copying.
lf you have any questions about the attached documents, please do not hesitate to
contact me.
Very truly yours,
X*!.7("ur,.*,
Lisa D. Nordstrom
LDN:slb
Attachment
DEFERRED ACCOUNTING OF INCREMENTAL GOSTS
IDAHO POWER COMPANY'S REPORT ON COVID.19 EXPENSES
December 31,2020
ln Order No. 34718 issued in Case No. GNR-U-20-03/IPC-E-20-19 on July 8,
2420, the Idaho Public Utilities Commission ("Commission") authorized ldaho Power
Company ('ldaho Power" or "Company') to defer to a regulatory asset incremental costs
from the COVID-19 public health emergency. Specifically, the Commission ordered that
the Company include in the deferred amounts: (1) an offset for benefits received under
the Coronavirus Aid, Relief and Economic Security ("CARES) Act Net Operating Loss
fNOL") provision, (2) bad debt expenses that exceed the 2019 levels of uncollectible bad
debt, (3) uncollected late fees at 2019 levels, (4) other COV|D-l9-related operations and
maintenance ("O&M') expenses, and (5) an offset for any reductions in O&M expenses
resulting from the COVID-19 public health emergency. ln addition, Idaho Power is
authorized to track any reduced revenues resulting from reduced sales not included in
the Company's Fixed Cost Adjustment ('FCA") mechanism. Pursuant to Order No.
34718, the Company's report outlines incremental expenses resulting from the COVID-
19 public health emergency recorded through November 30, 2020. ln addition, ldaho
Power has included a discussion regarding its preliminary findings related to reduced
sales revenues from classes not subject to the Company's FGA mechanism.
BACKGROUND
ln February 2A20, the World Health Organization designated the novel coronavirus
disease outbreak that began in 2019 as COMD-19 and in March 2020 declared COVID-
19 a pandemic. Also in March, the CARES Act, the Iargest economic stimulus package
in modern American history, was signed into law to respond to the economic impact of
measures designed to limit spread of the coronavirus pandemic. Subsequently, on March
25,2020, ldaho Governor Little issued an 'extreme emergency declaration' over the
COVID-19 outbreak and an Order to Self-lsolate for the State of ldaho '-to protect the
public from the spread of infections or @mmunicable diseases." As a result of the impacts
of COVID-19 and ldaho's state and local stay-home orders on ldaho businesses, the
Company anticipated a subset of customers would have the inability, or would be
challenged financially, to pay their ldaho Power bills untilthey can retum to work.
ln an effort to help contribute to the health and safety of its customers during this
crisis, in March 2020, the Company temporarily suspended service disconnections for
non-payment applicable to all ldaho and Oregon customers and began a temporary
suspension of all late fees for applicable customer billings. As detailed in a June 30,2020
letter to the Commission, ldaho Power, along with other ldaho utilities, prepared a Joint
Plan to Resume Normal Collection and Disconnection Activity. The Company also
provided Consumer Affairs Staff with a document outlining additional payment
arrangements available to each of its customer classes beyond what has been typical
business practice. ln its July 7,2020 decision meeting, the Commission approved the
Joint Plan for ldaho Power to resume normal collection and disconnection activity. While
ldaho Power resumed assessing late fees and disconnections in its ldaho service territory
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in August 2020, the Company has continued to offer flexibility with its customers in terms
of payment anangements and renegotiated payment plans.
DEFERRED COVID.Ig RELATED AMOUNTS TO DATE
The following summarizes the COvID-1g-related amounts the Commission
authorized to be deferred for possible recovery through future rates as of November 30,
2020:
CARES Act NOL Provision - ldaho Power is not eligible for any benefits associated
with the NOL provision of the CARES Act.
lncrcmental Bad Debt Expense - The Company has recordeda on an
ldaho jurisdictional basis associated with bad debt expenses that exceed 2019
levels.
oLatePaymentFees-Atotatotfinhtepaymentfeesforldahocustomers
have been waived and the amount remrded to the regulatory asset.t Other C0viD-lg-related O&M Expenses - As of September 30, 2A2O, no
additional amounts have been deferred associated with incremential ldaho
jurisdictional COVID-19-related expenses. However, the Company is continuing
to monitor, track, and review other COVID-19-related expenses as the pandemic
progresses.. Decreases r'h O&M Expenses rcsufting fuom the public health emeryency - ldaho
Power has credited thi regulatory asiet I for o&M savinis aisociated
with reduced employee travel and training during the public health emergency.
\Mth respect to the tracking of reduced revenues resulting from reduced sales not
included in the Cornpany's FCA mechanism, as of SeptemberS0,2020,ldaho Power has
not identified net revenue loss that would result in the need to track for potential deferral.
However, the Company will continue to monitor any sales impacts related to the pandemic
it progresses.
CONCLUSION
As of November 30, 2020, the Company has recorded a net of f in
incremental Idaho jurisdictional expenses resulting from the COVID-l9 emergency.
ldaho Power will continue to monitor all changes in expenses resulting from the COVID-
19 emergency for potential inclusion in, or ofEet ol the regulatory asset account and may
present the amounts to the Commission for a prudency review in a future regulatory
proceeding.
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