HomeMy WebLinkAbout200307162nd Response of Idaho Power to ICIP.pdfBarton L. Kline ISB #1526
Monica B. Moen ISB #5734
Idaho Power Company
P. O. Box 70
Boise ID 83707
(208) 388-2682
r~ECEIVEO
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ZO03 JUL 16 PM 12: 46
,.,
; i U;=Ljl~
UTILITIES Cm-H1ISSIOH
Attorneys for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise ID 83702
FAX Telephone No. (208) 388-6936
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INSTITUTE REVISED
DEPRECIATION RATES FOR ELECTRICPLANT IN SERVICE
CASE NO. IPC-03-
IPCO RESPONSE TO SECOND
PRODUCTION REQUEST OF
INDUSTRIAL CUSTOMERS OF IPCO
COMES NOW, Idaho Power Company ("Idaho Power" or the Company ), and
response to the Second Production Request of the Industrial Customers of Idaho Power
Company dated June 30 , 2003, herewith submits the following information:
Request No.For the purpose of this request No., please refer to the
Response to Request No.1 0, First Commission Staff Request and the Second Commission
Staff Request, Response to Request No. 18, and page 43 of 378 (11-33) of J. Spanos Exhibit No.
1. Please provide the specific index or indices published by the Department of Labor that leads
to the conclusion "trended to the probable retirement year based on 3 percent rate of inflation.
Please include in your answer the years used to find the 3 percent value for each index used in
the estimation.
Response to Request No.The 3 percent rate of inflation was determined by the
average of the consumer pricing index of the period 1986-2000. The information on the column
labeled "Percent Change for the West Region" of the attached pages was utilized for all 15
years to determine the 3 percent inflation rate. Attachment No.1 represents 3 months of the
year 1999. The 3 percent inflation rate was utilized to determine the net salvage percent for
each location in Steam Production Plant. The table on page 44 of 378 (II - 33) of John Spanos
Exhibit No.1 sets forth the calculation of future net salvage expected to decommission each
location at the time of retirement. The inflation rate is factored to the year of retirement per
kilowatt.
The response to this request was prepared by John J. Spanos of Gannett Fleming, Inc.
and Katrina Basye, Property Tax Manager, Idaho Power Company, in consultation with counsel
Monica B. Moen, Attorney for Idaho Power Company.
Request No.For the purpose of this Request No 4, please refer to the Response to
Request No., First Commission Staff Request. Response No.9 states
, "
There have been a
few other studies conducted that produce similar results to support the 1993 study used in this
case." Please provide a copy of each of those studies.
Response to Request No.Other studies used to support the 1993 study are not
public documents. These studies were used only to confirm that the 1993 study remains
consistent to estimates today.
The response to this request was prepared by John J. Spanos of Gannett Fleming, Inc.
and Katrina Basye, Property Tax Manager, Idaho Power Company, in consultation with counsel
Monica B. Moen, Attorney for Idaho Power Company.
Request No.For the purpose of this Request No.5, please refer to Attachment A of
Response to Request No., accounts 391.20 and 391.21. The referenced Attachment Column
2 shows the existing net salvage percent at 5, Column 3 shows a proposed change at
Should the value in Column 4 be 5 rather than
IPCO RESPONSE TO SECOND PRODUCTION REQUEST
OF INDUSTRIAL CUSTOMERS OF IPCO
Page 2
July 15, 2003
Response to Request No.For the purpose of this Request No., please refer to
Attachment A of Response to Request No., accounts 391.20 and 391.21. The referenced
Attachment Column 2 shows the existing net salvage percent at 5, Column 3 shows a proposed
change at O. Should the value in Column 4 be 5 rather than
The response to this request was prepared by John J. Spanos of Gannett Fleming, Inc.
and Katrina Basye, Property Tax Manager, Idaho Power Company, in consultation with counsel
Monica B. Moen, Attorney for Idaho Power Company.
Request No.What is the current method of calculating depreciation for each of the
accounts recommended for amortization included in Response to Request No. 11 , First
Commission Staff Request? If the recommended amortization method is different from the
current method , please explain fully the reason for the change.
Response to Request No.What is the current method of calculating depreciation for
each of the accounts recommended for amortization included in Response to Request No. 11
First Commission Staff Request? If the recommended amortization method is different from the
current method, please explain fully the reason for the change.
The response to this request was prepared by John J. Spanos of Gannett Fleming, Inc.
and Katrina Basye, Property Tax Manager, Idaho Power Company, in consultation with counsel
Monica B. Moen, Attorney for Idaho Power Company.
Request No.For the purpose of this Request No., please refer to page 361 of 378
(111-314) of J. Spanos Exhibit No.1. Is the current remaining life for account 9 years for account
391., as indicated by this Exhibit or 8 years as indicated by Response to Request No. 11 of
First Commission Staff Request? Please explain fully why a change to 5 years for account
391.2 is recommended in this filing.
Response to Request No.The current remaining life for Account 391.20 is neither 9
years nor 8 years. The response to Request No. 11 of First Commission Staff Request sets
forth the current average service life or amortization period of 8 years for this account. Page
IPCO RESPONSE TO SECOND PRODUCTION REQUEST
OF INDUSTRIAL CUSTOMERS OF IPCO
Page 3
July 15, 2003
361 of 378 (111-314) of J. Spanos Exhibit No.1 sets forth 9 years of surviving balances (1993-
2001 ).
The recommended 5 years amortization period for Account 391.20 reflects the most
appropriate length of time that the assets in this account render service value. A 5-year period
is consistent for this account for other utilities.
The response to this request was prepared by John J. Spanos of Gannett Fleming, Inc.
and Katrina Basye, Property Tax Manager, Idaho Power Company, in consultation with counsel
Monica B. Moen , Attorney for Idaho Power Company.
Respectfully submitted this 15th day of July 2003 in Boise , Idaho
MONICA MOEN
Attorney for Idaho Power Company
IPCO RESPONSE TO SECOND PRODUCTION REQUEST
OF INDUSTRIAL CUSTOMERS OF IPCO
Page 4
July 15, 2003
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 15th day of July 2003, a true and correct copy of the
within and foregoing IDAHO POWER RESPONSE TO INDUSTRIAL CUSTOMERS OF IDAHO
POWER'S SECOND PRODUCTION REQUEST, Case No. IPC-03-, was served by U.
Mail to:
Lisa Nordstrom
Idaho Public Utilities Commission
PO Box 83720
Boise , Idaho 83720-0074
Peter J. Richardson , Esq.
99 East State Street, Suite 200
PO Box 1849
Eagle , Idaho 83616
Don Reading
6070 Hill Road
Boise, Idaho 83702
John R. Gale
Idaho Power Company
PO Box 70
Boise , Idaho 83707
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, Idaho 83707
Monica Moen
Attorney
IPCO RESPONSE TO SECOND PRODUCTION REQUEST
OF INDUSTRIAL CUSTOMERS OF IPCO
Page 5
July 15, 2003
CASE NO. IPC-O3-
RESPONSE TO SECOND
PRODUCTION REQUEST OF ICIP
ATTACHMENT NO.
""""".'.
"",... Dth.~i.. no"'"
Table 2. Con_r Price Index for All Urban Con......n ICPI-UI and Con.- Pric. Index for Urban Wage Eame.. and Clerical Worken ICPI-WI, Selected
ere... all i.""", index
s. city .".r-
............................----
"'rtboon urban ..............................S".A' 110"""0.
'..,... ..............
.... .'C '.,.00'0 0.
'...
." J ..........'"
iii-' urban ....................
"..........
'b.A -lIDr."""'.
'...... .............
.... .,C, '.,
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'00,
...' ......,.....
,... o. 110_=-""" 110........ '.,.0.'
........,...............................
sooth.......
....."...........................
,...A- 110..""0,'.0.000...............b. .'C - 5..0'. t. '.
'..,
0.. , ............... 0 - _u......... "......... 5..0..,
..................................."".
won- ,,"""""""""""""""'"S".A ,"""""0,'0.,.00..............b. o/C' 5.....'00,
".,
00" ............
. J ......
".. ................."............
I,C J ........................".............
" ....................."...................___"
dol._........-......... It-1It-1D ...............
.... -,".-
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-'-
hi""'. "'-
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~PA
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_t_I'~'t...-..._, MA-lll-ICO-CO'
...... ....
",.....84,-. ON
..........................,,"..-
Port "'rth, D
...............".......
___-Bolt....., QC-IOO-VA-W 5
...........
AU....., GA
................."...............
lIo..oi.-- ArIIo.-Pl1at, III .................._......,.,_ton-"u."..
'" ............
011_-""" .............. PL ....................Pb"-'oM'-"'l81noton-AUoo". Ci'Y.OA"""'--
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on .
--
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--
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.....
,. TobO.. ,. ..... " a"'" Jon......"'" ""'y 10..- or tho CPI .....U04 _eo
..........., "'"
c,.oci.aod-_lton, DII-"-1II, """"--""""'roo'... co, -.01"., HI, ...... City, -'" ""_""-b".., III, llion_".-St. pool. ""ID, P'tto"""". PA, .....o.....-Sal-. ""-IIA,
St. '-i.. ID-It, ... D'.... ..., --St. ....._-C,..~.... PL.. I_' on . .....10. boo..., ..... not ........,..
..".., ""'" ....".. .. . -"" .. .
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....... .r. _.""""t. "'tho _.i_l CPI p....-. .....
,...,
i- boa . 881'.' -'" .h. ...... tho
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and 1.. """.fD'., .ubj... .. .""....U.Uy
.... -"'"
..... ath..
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Ao . .....,.. ,.... or- i_. ",..tor ~'.ti1ity than tho _dano1 i_, .,'....... tho.. 10...,t... u- or. .'.11_.
""""",
tb. ...... or
......,
notb".. .oroog'y ...... ...... to .....,,-. ............ tho
..."..., .......
COI 'or .... ... thoir ....loto. .lo.....
BRIEF EXPLANATION OFTHE CPI
The Consumer Price Index (CPI) is a measure of the average change
in prices over time in a fixed market basket of goods and services.
Two CPls are published: 1) The CPI for An Urban Consumers (CPI-
U) which covers about 87 percent of the total population and 2) the
CPI for Urban Wage Earners and Clerical Workers (CPI-W) which
covers 32 percent of the total population. The CPI is based on prices
of food, clothing, shelter, transportation, medical care, and other goods
and services that people buy for day-to-day living. In calculating the
Index, price changes for the various items in 87 locations are averaged
together with weights which represent their importance in the spending
of the appropriate population group. Indexes for different months are
usual/ycompared in relative terms. Thus, an index of 133.is 1.063
times higher than an index of 125.(133.51125.063); in other
words, prices increased percent. The CPI is used as an indicator
of inflation, a deflator of other economic series, and as an escalator
for income payments.
More detail. This news release from the Bureau of Labor Statistics
of the U.S. Department of Labor provides summary data from
the Consumer Price Index. The full release is available electron-
ically on the Internet at http./lstats.bls.gov/cplhome.htm
at release time. If you have any questions about the CPI, please
write to the Bureau of Labor Statistics, Division of Consum~rPrices
and Price Indexes, Room 3615 PSB, Washington, DC2O212, or
call (202) 606-7000. Full detail is available in the monthly periodical
CPI Detailed Report for $27 per year from New Orders, GC7v'8I'nment
Printing Office, P.O. Box 371954, Pittsburgh, PA 1525Q-7954.This
information will be made available to sensory impaired individuals
upon request. Voice phone: (202) 606-7828; Federal Relay Services
1-800-877-8339. For a recorded message of summary CPI data. call (202) 606-7828.
T.ble ~. Con...-r Price Index for All Urban Con,;""",r. ICP'-U) and Con._er Price Index for Urban WOOe EArnen ond Clerical Worker. ICPI-WI' Selected
are.... 011 it.... index
""3-
".""
",,10" at"~'" not""
""r.
....
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u..
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" . .. .. .. .. .. .. ..
sU'" Ma..thon'.S..,
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,".
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"0.
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sh..' -"apo""" "... ,bon ,..
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.....thool.'.'.O.'. ..
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. . . . .......'
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.... rnoel...,
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,-. CA
. . . . .. . . . . .
_c".-To.-,..-.tan.
... """,""""
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I -'~ .."..... .. .... f-. c_- ",'000. ....o. 'n cac""'~' ~U..I ........ .. .
--. ..".... ......, ....... ... .
__r
...,.,.. ......, ,. """"".
tho fD"-'" _c.apol1... .r- ... _11.....
-""""'. ....
... ,...,.. .. .... " of .... ,........."" "". ...... .f .... c.. OOtIlU'" -.., _r_. OR,
c~.......,.'-'o_. ,,","
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-'.'"
." ....... c"" _ItS, xU_uk_,...d_. "" ",__poli.-S'. ...,. ","" .",......... .11, ..rc""'-SO'-' ",,-IIA,
n. Lou1.,
-.", ...
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......
.- ...c,..... ,....., .lo"""" tholr ,....-co.. or""" or. ........ .."...f....
u. ...-. of .....,. Stor,.dc. """". ."'.. n." .. CDn""r --"'" tho noot...., .~r..' c., rD' .- ,.
-,.
..c.l".' cI......
BRIEF EXPLANATION OFTHE CPI
The Consumer Price Index (CPI) is a measure of the average change
in prices over time in a fixed market basket of goods and services.
Two CPls are published: 1) The CPI for All Urban Consumers (CPI-
U) which covers about 87 percent of the total population and 2) the
CPt for Urban Wage Earners and Clerical Workers (CPI-W) which
covers 32 percent ot the total population. The CPt is based on prices
of food, clothing, shelter, transportation, medical care, and other goods
and services that people buy for day-tCKIay living. In calculating the
Index. price changes for the various items in 87 locations are averaged
together with weights which represent their importance in the spending
of the appropriate population group. Indexes for different months are
usually compared in relative terms. Thus, an index of
133.5 is 063
times higher than an index of 125.(133.51125.063); in other
words. prices increased percent. The CPt is used as an indicator
of inflation, a deflator of other economic series, and as an escalator
for income payments.
More detail. This news release trom the Bureau of labor Statistics
of the U.S. Department of labor provides summary data from
the Consumer Price Index. The full release is available electron-
ically on the Internet at http.lIstats.bls.govlcplhome.htm
at release time. " you have any questions about the CPI, please
write to the Bureau of labor Statistics, Division of Consumer Prices
and Price Indexes, Room 3615 PSB, Washington. DC 2.0212, or
call (202) 606-7000. Full detail is available in the monthly periodical
CPI Detailed Report for $27 per year from New Orders, GCJ\Iemment
Printing Office, P.O. Box 371954, pittsburgh, PA 15250-7954. This
information will be made available to sensory impaired individuals
upon request. Voice phone: (202) 606-7828; Federal Relay Services,
800-877-8339. For a recorded message of summary cPt data,
call (202) 606-7828.
0""""'.' ..,... ."".". no"O'
Tob~. 2 C.ns"",er Price Index for All Urban Cons,"".... ICPI-UI and Co"'""",r Price Index tor Urb.n w.Q. .arn... and Clerica' Work.r. ICPl-WI, Selected
or.... 811 it.... index .
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BRIEF EXPLANATION OFTHE CPI
The Consumer Price Index (CPI) is a measure of the average change
in prices over time in a fixed market basket of goods and services.
Two CPls are published: 1) The CPI for All Urban Consumers (CPI,
U) which covers about 87 percent of the total population and 2) the
CPI for Urban Wage Earners and Clerical Workers (CPI-W) which
covers 32 percent of the total population. The cpr is based on prices
of food, clothing, shelter, transportation, medical care, and other goods
and services that people buy for day-to-day living. In calculating the
Index, price changes for the various items in 87 locations are averaged
together with weights which represent ttleir importance in the spending
of th e appropriate population group. Indexes for different months are
usually compared in relative terms. Thus, an index of 133.is 1.063
tim~s higher than an index of 125.(133.5/125.6=1,063); in other
words, prices increased percent. The CPI is used as an indicator
of inflation, a deflator of other economic series, and as an escalator
for income payments.
More detail. This news release from the Bureau of Labor Statistics
of the U.S. Department of labor provides summary data from
the Consumer Price Index. The full release is available electron-
ically on the Internet at http://stats.bls.gov/cpihome.htm
at release time, If you have any questions about the CPI , please
write to the Bureau of labor Statistics, Division of Consumer Prices
and Price Indexes, Room 3615 PSB, Washington, DC..20212, or
call (202) 606-7000. Full detail is available in the monthly periodical
CPI Detailed Report for $27 per year from New Orders, Government
Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. This
information will be made available to sensory impaired individuals
upon request. Voice phone: (202) 606-7828; Federal Relay Services,
800-877-8339, For a recorded message of summary CPI data
call (202) 606,7828.