970401.docx

DECISION MEMORANDUM
TO:COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVE SCHUNKE
KEITH HESSING
TERRI CARLOCK
DAVID SCOTT
WORKING FILE
FROM:SCOTT WOODBURY
DATE:April 1, 1997
RE:WWP POWER COST ADJUSTMENT
REQUEST FOR PROCEDURAL ACCOUNTING CHANGE
On March 27, 1997, Washington Water Power Company (Water Power; Company) made  a letter filing with the Idaho Public Utilities Commission (Commission) requesting a procedural accounting change in its power cost adjustment mechanism.  As reflected in the Company’s letter, the Company’s PCA was established in Case No. WWP-E-88-3, Order No. 22816 issued October 31, 1989.  The PCA was extended in Case WWP-E-93-3, Order No. 24874, and extended and modified in Case No. WWP-E-94-4, Order No. 25637.  Since the inception of the PCA, the Company relates that it has recorded PCA accounting entries for the current month using actual data from the current month.  The Company states that it is now in the process of accelerating its monthly closing schedule.  The accelerated closing schedule will make it make necessary to either: (1) record the PCA entry using estimated data with a true-up to actual data the following month, or, (2) record the PCA entry with a one-month lag using actual data from the preceeding month.
Of the two alternatives the Company recommends the second.  This procedure, the Company states, will eliminate the use of estimated data, will minimize the possibility of errors which might occur when adjusting estimates to actuals, and will allow Company personnel more time to prepare the PCA accounting entries.  Under the accelerated closing the PCA accounting entry is due the second working day following the end of the month.  Recording a PCA entry using estimated data would allow for a maximum of two working days to prepare the entry.  Recording a PCA entry with a one-month lag will allow for about fifteen working days to prepare the entry using actual data.
The Company requests that the Commission allow the recording of the PCA entry to occur with a one-month lag.  Changing to the one-month lag procedure will result in no PCA entry being made for one month when the change is made.  The Company requests that the change be made for the month of April 1997 and requests that the Commission make its decision by May 1, 1997.
Commission Decision:
The methodology for the Company’s PCA was established by Commission Order.  Staff recommends that a formal case docket be established for the Company’s request and that the matter be processed pursuant to Modified Procedure.  Does the Commission agree that a formal docket should be established?  Does the Commission agree that Modified Procedure is appropriate?  If not, what is the Commission’s preference?

Scott Woodbury
cm\M:wwppca.sw