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Home My WebLink About20170330IPC to Micron 24-26.pdf3rm. An IDACOfIP Company LISA D. NORDSTROM Lead Counsel I nordstrom@idahooower.com March 29,2017 VIA HAND DELIVERY Diane Hanian, Secretary ldaho Public Utilities Gommission 472 West Washington Street Boise, ldaho 83702 LDN/KKI Enclosures :l; *t ;";, \.i) -U3 N) r"t..i rn Re Case No. IPC-E-16-23 Revised Depreciation Rates for Electric Plant-l n-Service Response to Micron Technology, lnc.'s ("Micron') Fourth Data Request to ldaho Power Company Dear Ms. Hanian: Enclosed for filing are an original and three (3) copies of ldaho Power Company's Response to Micron's Fourth Data Request to ldaho Power Company in the above matter. lf you have any questions about the enclosed documents, please do not hesitate to contact me. Very truly youls, Lisa D. Nordstrcm LISA D. NORDSTROM (lSB No. 5733) ldaho Power Company 1221 West ldaho Street (83702\ P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5825 Facsimile: (208)388-6936 I nord strom@idahopower. co m Attomey for ldaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION '-,'.1" "r +1t;n -,1 I I I R\ ':)u3 ,i: (-, -*t r'', 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. CASE NO. !PC-E-16-23 IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY ) ) ) ) ) ) ) ) ) COMES NOW, ldaho Power Company ("ldaho Powef' or "Company"), and in response to the Fourth Data Request of Micron Technology, lnc. to ldaho Power Company dated March 1,2017, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 1 REQUEST NO. 24: Has Mr. John Spanos ever proposed an amortization period greater than five years for Account 303 (Software)? lf so, please provide (a) the amortization period proposed; (b) the state and docket number in which the proposal was made; and (c) a copy of the testimony or study supporting the proposal. RESPONSE TO REQUEST NO. 24: ldaho Power objects to the extent the Request, as written, is overly broad and unduly burdensome given Mr. Spanos' 30-year career. Notwithstanding the foregoing objection, ldaho Power notes that the requested information is publicly available. For instance, ldaho Power was able to find an Oklahoma Gas and Electric Company filing that Mr. Spanos provided direct testimony to in Cause No. PUD 201500273 before the Corporation Commission of Oklahoma. The Oklahoma Gas and Electric Company filed request included a 1O-SQ survivor curve for plant account 303.2 Miscellaneous lntangible Plant - Software. The filed request can be found at: htto://www.oooqle.com/url?sa=t&rct=i&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwi M 1 aPWnPzSAh UJ5WMKHUFWAOkQFqoqMAE&url =http%3A%2F%2Fphx.coroorate- ir.net%2FExternal.File%3Fitem%3DUGFvZW50SUQ9NjAl NzUlfENoaWxkSUQ9MzE3NzMvfFR5cGU9M Q%3D%3D%261%3D1 &uso=AFQiCNEpNz9c OSEvGx xiP4lR49z9wsCw The response to this Request is sponsored by Donna Wheeler, Finance Team Leader, ldaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 2 REQUEST NO. 25: Has any other expert or consultant with Gannett Fleming Valuation and Rate Consultants ever proposed an amortization period greater than five yearc for Account 303 (software)? lf so, please provide (a) the name of the expert or consultant; (b) the amortization period proposed; (c) the state and docket number in which the proposal was made; and (d) a copy of the testimony or study supporting the proposal. RESPONSE TO REQUEST NO. 25: ldaho Power objects to the extent the Request, as written, is overly broad and unduly burdensome given the long-term history of Gannett Fleming Valuation and Rate Consultants. Notwithstanding the foregoing objection, ldaho Power notes that the requested information is publicly available. For instance, ldaho Power was able to find a Siena Pacific Power Company filing that Gannett Fleming Valuation and Rate Consultants provided direct testimony to in Docket No. 16-06 before the Public Utilities Commission of Nevada. The Siena Pacific Power Company filed request included a 1O-SQ survivor curve for plant account 303 Software. The filed request can be found at: httos://www. nvenerov. com/comoanv/rates/fil inqs/others/SPPC/SPPC Vol 1 Electric D epreciation Studv.pdf The response to this Request is sponsored by Donna Wheeler, Finance Team Leader, ldaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 3 REQUEST NO. 26: PIease provide a copy of all studies, reports, and/or analyses supporting "the Company's understanding of standard industry practice" with respect to the amortization period for Account 303 (software). RESPONSE TO REQUEST NO. 26: ldaho Power does not maintain any studies, reports, and/or analyses related to the amortization period for Account 303. The Company's understanding of industry practice was developed through discussions with peer utilities and information received at various industry conferences, particularly while in attendance of Edison Electric lnstitute ('EEl") Property Accounting & Valuation Committee conference. Please see the attached industry survey from the EEI conference which indicates that nearly a!! respondents utilize an amortization period for account 303 between 3-5 years. The response to this Request is sponsored by Donna Wheeler, Finance Team Leader, ldaho Power Company. DATED at Boise, ldaho, this 29h day of March 2017. D. Attomey for ldaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 29h day of March, 2017, t served a true and conect copy to IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY thE following named parties by the method indicated below, and addressed to the following: Commission Staff Daphne Huang Deputy Attomey Genera! ldaho Public Utilities Commission 472 West Washington (83702) P.O. Box 83720 Boise, ldaho 83720-OOl 4 Micron Technology, lnc. Thorvald A. Nelson Frederick J. Schmidt Emanuel T. Cocian Brian T. Hansen HOLLAND & HART, LLP 6380 South Fiddlers Green Circle, Suite 500 Greenwood Village, Colorado 80111 Pete Bennett Mlcron Technology, lnc. 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 _Hand Delivered _U.S. Mail _Ovemight Mai! _FAXX Email daohne.huano@puc.idaho.qov _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email tnelson@hollandhart.com fschmidt@hollandhart.com etcocianlOholl andhart.com bhansen@holland hart. com kl hall@hol land hart. com kmtrease@hol land hart. com _Hand Delivered _U.S. Mail _Ovemight Mail _FAX X Email cbennett(Omicron.com tawolf@micron.com _Hand Delivered _U.S. Mail _Ovemight Mail _FAXX Email elo@echohawk.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email tonv@vankel.net IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY. 5 lndustrial Customers of ldaho Power Peter J. Richadson Gregory M. Adams RICHARDSON ADAMS, PLLC 515 North 27b Street (83702) P.O. Box 7218 Boise, ldaho 83707 Dr. Don Reading 6070 Hill Road Boise, ldaho 83703 United States Department of Energy and Federal Executive Agencies Steven Porter Office of the General Counsel (GC-76) The United States Department of Energy 1000 lndependence Avenue, SW (Room 6D-033) Washington, D.C.20585 ldaho Gonservation League Benjamin J. Otto ldaho Conservation League 710 North Sixth Street P.O. Box 844 Boise, ldaho 83701 Sierra Glub Travis Ritchie Sierra Club 2101 Webster Street, Suite 1300 Oakland, Califomia 94612 _Hand Delivered _U.S. Mail _Ovemight Mail _FAXX Email peter@richardsonadams.com qreo@ richardsonadams. com _Hand Delivered _U.S. Mai! _Ovemight Mail _FAXX Email dreading@mindsprinq.com _Hand Delivered _U.S. Mail _Ovemight Mail _FAXX Email steven.porter@hq.doe.gov _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email botto@idahoconservation.orq _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email travis.ritchie@sierraclub.org Assistant o rly Towell IDAHO POWER COMPANY'S RESPONSE TO THE FOURTH DATA REQUEST OF MICRON TECHNOLOGY, INC. TO IDAHO POWER COMPANY - 6 ^*r*I I.r . rr t EE f6 rr. I I_I ...,,t {l!$ srl ,i'I r IIt a II Property Accounting Roundtable Questions November 1&16, 2016 r Clearwater Beach Maniott Suites on Sand Key r Clearwater Beach, FL Submlttcd by: Compary: Toplc: Melissa Ostrom XcelEnergy Depreciation Question lMtat amortizable lives do you assign to software assets? (select all that apply) 1) 3-5years=152) 6 -7 years =3) 8-10 years4) 11-15 years 5) Greater than 15 y€ars = 2 (AMl backbone @ 20 years) and (Billing System) - Special cases based on anticipated usage. Baclground lnfo: None Plcelc rubmit completed fom by Oc-tobcr 21,m16 (ln r wod flh) by rmall to: Ce0rerlne tuclbr Prolcct t Asrot Accounting tenrger Avlct Corpontlon (509) tl95''1125 catherine.mueller@avistacorp.com 43