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Independent regulatory commissions

Federal Energy Regulatory Commission Institutes Section 206 Proceeding Against Idaho Power

Strategic Insights

— 2 min read

The Federal Energy Regulatory Commission (FERC) has issued an opinion (192 FERC P 61,032) instituting a section 206 proceeding against Idaho Power Company (Idaho Power) regarding its market-based rate authority in the Idaho Power balancing authority area. The proceeding aims to determine whether Idaho Power's market-based rates remain just and reasonable and to establish a refund effective date. On April 25, 2025, Idaho Power submitted a notice of change in status to report new affiliation with 200 megawatts of generation capacity in the Idaho Power balancing authority area. The company's filing includes market power analyses for various balancing authority areas and the Western Energy Imbalance Market administered by California Independent System Operator Corporation.

Key Takeaways:

  • Idaho Power fails the wholesale market share indicative screen in the spring, fall, and winter seasons for the December 1, 2022 to November 30, 2023 study period, establishing a rebuttable presumption of horizontal market power.
  • FERC institutes a section 206 proceeding to determine whether Idaho Power's market-based rate authority in the Idaho Power balancing area remains just and reasonable and to establish a refund effective date.
  • Idaho Power must show cause within 60 days of the order's issuance as to why the Commission should not revoke its market-based rate authority in the Idaho Power balancing authority area.
  • The company may present alternative evidence, such as a delivered price test study, to rebut the results of the indicative screens.
  • Idaho Power may file a mitigation proposal tailored to its particular circumstances that would eliminate the ability to exercise market power or inform the Commission that it will adopt default cost-based rates.
  • The refund effective date in Docket No. EL25-91-000 established pursuant to section 206 of the FPA shall be the date of publication in the Federal Register of the notice discussed in Ordering Paragraph (D) above.

Statistics:

  • December 1, 2022 to November 30, 2023 study period: Idaho Power fails the wholesale market share indicative screen in the spring, fall, and winter seasons.
  • 60 days: Idaho Power has to show cause as to why the Commission should not revoke its market-based rate authority in the Idaho Power balancing authority area.
  • 30 days: Interested persons have to file a notice of intervention or motion to intervene with the Federal Energy Regulatory Commission, Washington, DC 20426.
  • May 2025: Idaho Power's submission of a notice of change in status to report new affiliation with 200 megawatts of generation capacity in the Idaho Power balancing authority area.

Sources:

  • 16 U.S.C. SS 824e.
  • 18 C.F.R., Chapter I (2024).
  • 119 FERC P 61,295.
  • 121 FERC P 61,260.
  • 123 FERC P 61,055.
  • 124 FERC P 61,055.
  • 125 FERC P 61,326.
  • 127 FERC P 61,284.
  • 130 FERC P 61,206.
  • 659 F.3d 910 (9th Cir. 2011).
  • Order No. 697.
  • Federal Power Act.
  • FERC's Rules of Practice and Procedure.
  • Idaho Power Company.
  • Federal Register.
  • California Independent System Operator Corporation.

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