200168_bs_sw.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
SCOTT WOODBURY
TERRI CARLOCK
BEVERLY BARKER
RON LAW
GENE FADNESS
TONYA CLARK
WORKING FILE

FROM: BOB SMITH
SCOTT WOODBURY

DATE: JUNE 8, 2001

RE: CASE NO. UWI-W-O1-02 (United Water)
REQUEST FOR A DEFERRED ACCOUNTING ORDER

On May 18, 2001, United Water Idaho Inc. (Company or United) filed an application requesting authorization to defer on its books, beginning May 1, 2001, certain electric power costs. The costs to be deferred are the incremental costs the Company will realize as a direct result of Commission Order No. 28722 dated May 1, 2001 in Cases IPC-E-01-07 and IPC-E-01-11. That order authorized a change in Idaho Power Company’s electric rates. United does not request a determination of ratemaking treatment of these costs at this time, but will request they be recognized in rates in the Company’s next general rate case application.
United’s current water rates were established by Order No. 28505 dated September 5, 2000 in Case No. UWI-W-00-01. That order recognized the level of Idaho Power Company’s electric rates at the date of the order. United estimates the magnitude of the increase in electric power rates to be approximately $389,815 representing an increase of 35.75% over the level of electric cost authorized in United’s last rate case.
United further requests that the deferral be approved for any additional increases in Idaho Power Company rates that may be ordered by the Commission in Cases IPC-E-01-07 and IPC-E-01-11. The Company also proposes to apply a 5% carrying charge on the unamortized deferred balance. The 5% carrying charge is the rate the Commission approved for interest on customer deposits by Order No. 28575 on November 27, 2000 in Case No. GNR-U-00-5.
The Company requests that its application be processed under modified procedure pursuant to IPUC RP 201.
Commission Decision:
Staff recommends that the Company’s Application be processed pursuant to Modified Procedure, i.e., by written submission rather than by hearing. IDAPA 31.01.01.201-204. Does the Commission agree with Staff’s proposed procedure? If not, what is the Commission’s preference?

M:UWI-W-01-02_bs_sw

DECISION MEMORANDUM 2