20170222IPC to Micron 3.1.pdf

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An IDACORP CompanY
LISA D. NORDSTROM
Lead Counsel
I [e-mail]
r-i:ll.rl.j
February 22,2017
VIA HAND DELIVERY
Diane Hanian, Secretary
ldaho Public Utilities Commission
47 2 W est Washi ngton Street
Boise, ldaho 83702
Re Case No. IPC-E-16-23
Revised Depreciation Rates for Electric Plant-ln-Service
Response to Micron Technology, !nc.'s ("Micron") Third Data Request to
ldaho Power Company
Dear Ms. Hanian:
Enclosed for filing are an original and three (3) copies of Idaho Power Company's
Response to Micron's Third Data Request to ldaho Power Company in the above matter.
Also enclosed are four (4) copies of a non-confidential disk containing the
attachment to Micron's Data Request No. 3-1.
lf you have any questions about the enclosed documents, please do not hesitate to
contact me.
Very truly yours,
Lisa D
LDN/KKI
Enclosures
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LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83701
Telephone: [phone]
Facsimile: [phone]
I nordstrom@ ida hopower. com
Attomey for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
DUE TO REVISED DEPRECIATION RATES
FOR ELECTRIC PLANT-IN-SERVICE.
51[CE IVED
?iiiii.fr22 PH 3: k5
CASE NO. IPC-E-16-23
IDAHO POWER COMPANY'S
RESPONSE TO THE THIRD DATA
REQUEST OF MICRON
TECHNOLOGY, INC. TO IDAHO
POWER COMPANY
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COMES NOW, ldaho Power Company ("ldaho Powe/' or "Company'), and in
response to the Third Data Request of Micron Technology, lnc. to ldaho Power
Company dated February 1,2017, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD DATA REQUEST
OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY. 1
REQUEST NO. 3-1: Please identify the account containing the Company's
software systems and applications.
a. Please identify each software system reflected in this account, including a
detailed description of the software, the year it was installed, and its coresponding cost.
Finally, identify if it is stil! in physica! service (not retired on an amortization basis, but
rather sti!! physically being utilized). The information should be provided on electronic
medium in Excel readable format.
b. Please state the depreciation or amortization rate for this account and
provide alljustification and support for how such rate was established.
c. Please provide the depreciation or amortization expense for this account
this is included in rates and show how such expense was calculated.
RESPONSE TO REQUEST NO. 3.1:
The account containing the Company's software systems and applications is
Account 303.
a. Please see attached file. ldaho Power identified whether a software
installation was still physically in service for five randomly selected items. This
modification in response for a random sample of five installations, instead of all 117
installations included in the attached file, was agreed to during a conference call on
February 9,2017, which included ldaho Power and Micron representatives.
b. Account 303 is amortized at 20 percent annually, to reflect a five-year
amortization period based on the Company's understanding of standard industry
practice. Amortization expense associated with Account 303 was first included in
customer rates in the Company's 2003 general rate case (Case No. IPC-E-03-13)
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD DATA REQUEST
OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 2
reflecting the 20 percent amortization rate when plant amounts and associated
amortization expense were part of a rate case test year.
c. The Account 303 amortization expense curently included in rates on a
system basis is $7,231,530, or $6,894,082 on an ldaho jurisdictiona! basis. This
amount was calculated by applying a five-year amortization rate to estimated 2011
Account 303 plant balances.
The response to this Request is sponsored by Donna Wheeler, Finance Team
Leader, and Courtney Waites, Senior Regulatory Analyst, ldaho Power Company.
DATED at Boise, ldaho, this 22nd day of February 2017.
Attomey for ldaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO THE THIRD DATA REQUEST
OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY. 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 22nd day of February, 2017,1 served a true and
correct copy to IDAHO POWER COMPANY'S RESPONSE TO THE THIRD DATA
REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY thc
following named parties by the method indicated below, and addressed to the following:
Commission Staff
Daphne Huang
Deputy Attomey General
ldaho Public Utilities Commission
47 2 W est Washi ngton (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
Micron Technology, lnc.
Thorvald A. Nelson
Frederick J. Schmidt
EmanuelT. Cocian
Brian T. Hansen
HOLLAND & HART, LLP
6380 South Fiddlers Green Circle, Suite 500
Greenwood Village, Colorado 80111
Pete Bennett
Micron Technology, !nc.
8000 South FederalWay
Boise, ldaho 83707
ldaho lrrigation Pumpers Association, lnc.
Eric L. Olsen
ECHO HAWK & OLSEN, PLLC
505 Pershing Avenue, Suite 100
P.O. Box 6119
Pocatello, ldaho 83205
Anthony Yankel
12700 Blake Avenue, Unit 2505
Lakewood, Ohio 44107
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fsch midt@holland hart.com
etcocian@holland hart.com
bhansen@hol land hart. com
klhall@holland hart. com
kmtrease@ho I land hart.com
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IDAHO POWER COMPANY'S RESPONSE TO THE THIRD DATA REQUEST
OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 4
lndustrial Customers of Idaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27th Street (S3702)
P.O. Box 7218
Boise, ldaho 83707
Dr. Don Reading
6070 Hil! Road
Boise, ldaho 83703
United States Department of Energy and
Federal Executive Agencies
Steven Porter
Office of the Genera! Counsel (GC-76)
The United States Department of Energy
1000 lndependence Avenue, SW (Room 6D-033)
Washington, D.C.20585
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
P.O. Box 844
Boise, ldaho 83701
Sierra Club
Travis Ritchie
Sierra Club
2101 Webster Street, Suite 1300
Oakland, Califomia 94612
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q reg@richardsonadams. com
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IDAHO POWER COMPANY'S RESPONSE TO THE THIRD DATA REQUEST
OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY. 5