REGULATORY MATTERS: Regulatory Matters Level 3 (Tables)

12 Months Ended

Dec. 31, 2019

Regulatory Assets and Liabilities, Other Disclosures [Abstract]

Schedule of Regulatory Assets and Liabilities

The following table presents a summary of Idaho Power’s regulatory assets and liabilities (in thousands of dollars):



		As of December 31, 2019
	Remaining Amortization Period	Earning a Return⁽¹⁾		Not Earning a Return		Total as of December 31,
Description	Remaining Amortization Period	Earning a Return⁽¹⁾		Not Earning a Return		2019		2018
Regulatory Assets:
Income taxes⁽²⁾		$	—	$	646,886	$	646,886	$	614,144
Unfunded postretirement benefits⁽³⁾		—		347,935		347,935		278,674
Pension expense deferrals⁽⁴⁾		150,350		22,287		172,637		147,836
Energy efficiency program costs⁽⁵⁾		1,465		—		1,465		1,398
Fixed cost adjustment⁽⁶⁾	2020-2021	35,208		18,808		54,016		42,503
North Valmy plant settlements⁽⁶⁾	2020-2028	107,525		—		107,525		77,512
Asset retirement obligations⁽⁷⁾		—		18,835		18,835		17,655
Long-term service agreement	2020-2043	15,412		10,178		25,590		26,748
Other	2020-2055	2,804		5,366		8,170		7,704
Total		$	312,764	$	1,070,295	$	1,383,059	$	1,214,174
Regulatory Liabilities:
Income taxes⁽⁸⁾		$	—	$	96,599	$	96,599	$	98,042
Depreciation-related excess deferred income taxes⁽⁹⁾		183,881		—		183,881		190,062
Removal costs⁽⁷⁾		—		185,685		185,685		183,798
Investment tax credits		—		94,806		94,806		92,790
Deferred revenue-AFUDC⁽¹⁰⁾		109,921		41,747		151,668		135,146
Energy efficiency program costs⁽⁵⁾		—		—		—		5,259
Power supply costs⁽⁶⁾	2020-2021	46,022		2,470		48,492		42,322
Settlement agreement sharing mechanism⁽⁶⁾		—		—		—		5,025
Tax reform accrual for future amortization⁽¹¹⁾		—		9,139		9,139		—
Other		6,636		5,279		11,915		12,433
Total		$	346,460	$	435,725	$	782,185	$	764,877

(1) Earning a return includes either interest or a return on the investment as a component of rate base at the allowed rate of return.

(2) Represents flow-through income tax accounting differences which have a corresponding deferred tax liability disclosed in Note 2 - "Income Taxes."

(3) Represents the unfunded obligation of Idaho Power’s pension and postretirement benefit plans, which are discussed in Note 12 - "Benefit Plans."

(4) Idaho Power records a regulatory asset for the difference between net periodic pension cost and pension cost considered for rate-making purposes relating to Idaho Power's defined benefit pension plan. In its Idaho jurisdiction, Idaho Power’s inclusion of pension costs for the establishment of retail rates is based upon contributions made to the pension plan. This regulatory asset account represents the difference between cumulative cash contributions and amounts collected in rates. Deferred costs are amortized into expense as the amounts are provided for in Idaho retail revenues.


(5)	The energy efficiency asset includes the Oregon jurisdiction balance at December 31, 2019 and 2018. The Idaho jurisdiction balance was an asset at December 31, 2019, and a liability at December 31, 2018.

(6) This item is discussed in more detail in this Note 3 - "Regulatory Matters."

(7) Asset retirement obligations and removal costs are discussed in Note 14 - "Asset Retirement Obligations (ARO)."

(8) Represents the tax gross-up related to the depreciation-related excess deferred income taxes and investment tax credits included in this table and has a corresponding deferred tax asset disclosed in Note 2 - "Income Taxes."

(9) In 2017, income tax reform reduced deferred income tax assets and liabilities. For depreciation-related timing differences under the normalized tax accounting method, this reduction will flow back to customers under the statutorily prescribed average rate assumption method.

(10) Idaho Power is collecting revenue in the Idaho jurisdiction for AFUDC on HCC relicensing costs but is deferring revenue recognition of the amounts collected until the license is issued and the asset is placed in service under the new license.

(11) Represents amount accrued under the May 2018 Idaho Tax Reform Settlement Stipulation (described below) for the future amortization of existing or future unspecified regulatory deferrals that would otherwise be a future liability recoverable from Idaho customers.

Schedule of Power Cost Adjustment Changes

The table below summarizes the three most recent Idaho-jurisdiction PCA rate adjustments, all of which also include non-PCA-related rate adjustments as ordered by the IPUC:



Effective Date	$ Change (millions)			Notes
June 1, 2019	$	(50.1	)	The $50.1 million decrease includes a $5.0 million credit to customers for sharing of 2018 earnings under the IPUC order approving the extension, with modifications, of the terms of the December 2011 Idaho settlement stipulation for the period from 2015 through 2019 (October 2014 Idaho Earnings Support and Sharing Settlement Stipulation) and a $2.7 million credit for income tax reform benefits related to Idaho Power's OATT rate under a May 2018 Idaho tax reform settlement stipulation as described below in this Note 3 - Regulatory Matters.
June 1, 2018	$	(30.4	)	The $30.4 million total decrease in PCA rates includes a $7.8 million one-time benefit for income tax benefits accrued from January 1 to May 31, 2018, and the income taxes related to Idaho Power's open access transmission tariff (OATT) rate as described below in this Note 3 - Regulatory Matters.
June 1, 2017	$	10.6		The net increase in PCA rates included an offsetting $13.0 million reduction for the refund of previously collected Idaho energy efficiency rider funds.

Schedule of Fixed Cost Rate Adjustments

The following table summarizes FCA amounts approved for collection in the prior three FCA years:



FCA Year	Period Rates in Effect	Annual Amount (in millions)
2018	June 1, 2019-May 31, 2020	$34.8
2017	June 1, 2018-May 31, 2019	$15.6
2016	June 1, 2017-May 31, 2018	$35.0

Schedule of Open Access Transmission Rates

Idaho Power's OATT rates submitted to the FERC in Idaho Power's four most recent annual OATT Final Informational Filings were as follows:



Applicable Period	OATT Rate (per kW-year)
October 1, 2019 to September 30, 2020	$	27.32
October 1, 2018 to September 30, 2019	$	31.25
October 1, 2017 to September 30, 2018	$	34.90
October 1, 2016 to September 30, 2017	$	25.52