20051130IPC response staff's 1st request.pdf

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BARTON L. KLINE
Senior Attorney
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Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
Re:Case No. IPC-05-
Idaho Power Company Response to the
First Production Request of Commission Staff
Dear Ms. Jewell:
Please find enclosed for filing three (3) copies of Idaho Power Company
Response to the First Production Request of Commission Staff regarding the above-
described case.
I would appreciate it if you would return a stamped copy of this transmittal
letter in the enclosed self-addressed, stamped envelope.
Very truly yours
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Barton L. Kline
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Enclosures
Telephone [phone] Fax [phone] E-mail BKlinerBJidahopower.com
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BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB #5734
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorneys for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise , Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY TO INCLUDE
EXPENSES ASSOCIATED WITH ITS
CLOUD SEEDING PROGRAM IN THE
COMPANY'S PCA ON AN ONGOING BASIS
CASE NO. IPC-05-
IDAHO POWER COMPANY'
RESPONSE TO FIRST
PRODUCTION REQUEST
OF COMMISSION STAFF
COMES NOW, Idaho Power Company ("Idaho Power" or "the Company
and in response to the First Production Request of the Commission Staff to Idaho Power
Company dated November 16, 2005, herewith submits the following information:
REQUEST NO.1: Please provide cost detail and description by cloud
seeding year (2002-2003, 2003-2004, 2004-2005) for the $5.43 million in cloud seeding
costs shown on line 16, page 21 of Mr. Riley s Direct Testimony. Identify capital costs
and expenses. Also classify expenses as types of expenses that the Company expects
to continue and those that are expected to be non-recurring.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page
RESPONSE TO REQUEST NO.1: The three-year cloud seeding
expenses referenced in Mr. Riley s Direct testimony on line 15 of page 21 were $3.
million. The $5.43 million value in Mr. Riley s testimony refers to the three-year
benefits of cloud seeding.
Since the writing of Mr. Riley s testimony, cloud seeding expenses have
been further reviewed and the actual three-year costs of cloud seeding have amounted
to $3.38 million.
These costs break down as follows:
Capital O&M Total
July 2002 - June 2003 $ 26 398 802 348 828,746
July 2003 - June 2004 $ 267 978 $ 1 036 995 $ 1 ,304 973
July 2004 - June 2005 $ 27 875 218 971 $ 1 ,246,846
Grand Totals $ 322 251 $ 3,058,314 $ 3 380 565
Within the O&M expenditures were the following consulting service fees:
2002 - 2003 $236 504
2003 - 2004 $78,213
2004 - 2005 $109 056
Consulting service fees will decline in the future to approximately $50 000
for 2006 and to $25 000 per year thereafter. Non-recurring consulting fees included
the three-year O&M total amount to $348 773 ($236 504 + $78 213 + $109 056 -
$75 000 of recurring expenditures).
Also within the 0 & M expenditures were the following trace chemistry
evaluation fees:
2003 - 2004 $138,734
2004 - 2005 $250 018
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 2
All of the costs associated with trace chemistry evaluation will drop out of
future budgets. Non-recurring trace chemistry evaluation expenditures included in the
three-year O&M totals amount to $388,752.
Total non-recurring expenses included in the three-year O&M values
amount to $737 525. Remaining expenditures amount to $2 320,789 ($3,058,314 -
$737 525).
This response was prepared by Mr. Gary Riley, Senior Meteorologist
Idaho Power Company, in consultation with Mr. Gregory W. Said, Manager of Revenue
Requirement, and Mr. Barton L. Kline, Senior Attorney.
REQUEST NO.2: Please calculate the cloud seeding benefit cost ratio
with capital costs and non-recurring expenses removed from the $5.43 million total cost.
RESPONSE TO REQUEST NO.2: Please see the Response to Request
No.
$3,380 565 (Three-year total)
- $322 251 (Capital)
- $348 773 (Non-recurring consulting)
$388,752 (Non-recurrinq evaluation)
320,789
Dividing the estimated value of the water for hydropower production of
$5.43 million by the $2.32 million of expenditures excluding capital and non-recurring
items results in a Benefit to Cost ratio for the project of: 2.3 to 1.
This response was prepared by Mr. Gary Riley, Senior Meteorologist
Idaho Power Company, in consultation with Mr. Gregory W. Said, Manager of Revenue
Requirement and Mr. Barton L. Kline, Senior Attorney.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 3
DATED this 30th day of November, 2005.
BARTON GN
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Attorney for Idaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 30th day of November, 2005, I served a
true and correct copy of the within and foregoing IDAHO POWER COMPANY'
RESPONSE TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF upon the
following named parties by the method indicated below, and addressed to the following:
Weldon B. Stutzman
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho 83720-0074
Hand Delivered
S. Mail
Overnight Mail
FAX
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BARTON L. KLINE
CERTIFICATE OF SERVICE