IPCClarification.pdf

Telephone [phone], FAX [phone]
LARRY D. RIPLEY
Senior Attorney

May 20, 2002

Ms. Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074

Re: Case No. IPC-E-02-02/03
Idaho Power Company’s Petition For Clarification

Dear Ms. Jewell:

Enclosed for filing with the Commission are an original and seven (7) copies
of Idaho Power Company’s Petition For Clarification regarding the above-described case.

I would appreciate it if you would return a stamped copy of this transmittal
letter for our files.

Very truly yours,

/s/
Larry D. Ripley

LDR:jb
Enclosures

IDAHO POWER COMPANY’S PETITION FOR CLARIFICATION OF ORDER NO. 29026, Page 1
LARRY D. RIPLEY ISB #965
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]

Attorney 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 FOR AN ) CASE NO. IPC-E-02-02
ENERGY COST FINANCING ORDER AND ) IPC-E-02-03
AUTHORITY TO INSTITUTE AN ENERGY )
COST BOND CHARGE. )
) IDAHO POWER COMPANY’S
) PETITION FOR CLARIFICATION
IN THE MATTER OF THE APPLICATION ) OF ORDER NO. 29026
OF IDAHO POWER COMPANY FOR )
AUTHORITY TO IMPLEMENT A POWER )
COST ADJUSTMENT (PCA) RATE FOR )
ELECTRIC SERVICE FROM MAY 16, 2002 )
THROUGH MAY 15, 2003. )
)

Idaho Power Company (“Idaho Power” or “the Company”) herewith
petitions for clarification of Order No. 29026 pursuant to RP 325 for the following
reasons:
Under service date of May 13, 2002, the Commission in this proceeding
issued Order No. 29026. In that Order at p. 8 the Commission discussed an Irrigation
Lost Revenue Adjustment and made findings as follows:

IDAHO POWER COMPANY’S PETITION FOR CLARIFICATION OF ORDER NO. 29026, Page 2
1. Irrigation Lost Revenue Adjustment. Last year, the
Commission approved a program to pay irrigators to reduce their
consumption of energy and authorized Idaho Power to recover its direct
costs associated with the program in this year’s PCA. Order No. 28992.
Staff verified $73,941,839.42 in direct program costs and that they were
properly included in the PCA account. Tr. at 424. In addition to these
direct costs, Idaho Power calculated that it “lost” $15,146,639.32 in
revenue when irrigators participated in the Irrigation Load Reduction
Program.1 Staff recommended disallowance of the “lost” revenues per
Order No. 28992, in which the Commission denied recovery of the
Company’s reduced revenues. Id.

Commission Findings. This issue has been thoroughly
addressed during the proceedings in Case No. IPC-E-01-34. In that case
we stated, “in the context of the market situation that existed at the time
this Program was approved, it was the prudent if not required action for
the Company to take and that further incentives, such as the recovery of
lost revenues, to develop and utilize a program of this type were not
needed.” Order No. 28992 at 7-8. Consistent with our final Order in Case
No. IPC-E-01-34, we disallow recovery of the $15,146,639.32 included by
Idaho Power.2

1 “Lost” revenue refers to revenue that the utility would have earned if it
had sold power to the participating irrigators instead of paying the
irrigators to reduce their electric consumption.
2 On May 2, 2002, Idaho Power filed a Petition for Reconsideration in
Case No. IPC-E-01-34.

The Commission in its discussion and findings in Order No. 29026, Case
No. IPC-E-02-02/03 referred to the Petition for Reconsideration that the Company filed
and is currently pending in Case No. IPC-E-01-34. It is the Company’s understanding
that the Commission in Order No. 29026 at p. 8 considers Order No. 28992 issued in
Case No. IPC-E-01-34 as being the controlling decision that resulted in the
disallowance of irrigation load reduction lost revenues in IPC-E-02-02/03. The
Company believes that the issue of the disallowance of lost revenue is properly before
the Commission in Case No. IPC-E-01-34. The Company, however, does not desire to

IDAHO POWER COMPANY’S PETITION FOR CLARIFICATION OF ORDER NO. 29026, Page 3
assume at its peril that this is the case and, accordingly, asks the Commission to clarify
that in Order No. 29026 the Commission was simply referring to Order No. 28992
issued in Case No. IPC-E-01-34 and that Order No. 28992 is the controlling Order as to
the disallowance of irrigation load reduction lost revenues.
The Company requests that pursuant to RP 325 the Commission clarify its
Order No. 29026 that the Commission was simply referring to Order No. 28992 issued
in Case No. IPC-E-01-34 and that the Commission considers Order No. 28992 as the
controlling Order in disallowing irrigation load reduction lost revenues. The Company
requests that the Commission issue its order as to this issue before the time for filing a
petition for reconsideration has expired, so that if Idaho Power is required to file a
petition for reconsideration, it still has time to do so.
Respectfully submitted this 20th day of May, 2002.

LARRY D. RIPLEY
Attorney for Idaho Power Company

CERTIFICATE OF SERVICE
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 20th day of May, 2002, I served a true
and correct copy of the above and foregoing IDAHO POWER COMPANY’S PETITION
FOR CLARIFICATION OF ORDER NO. 29026 upon the following named parties by the
method indicated below, and addressed to the following:

Lisa D. Nordstrom x Hand Delivered
Deputy Attorney General U.S. Mail
Idaho Public Utilities Commission Overnight Mail
472 W. Washington Street FAX
P.O. Box 83720
Boise, Idaho 83720-0074

John Hammond x Hand Delivered
Deputy Attorney General U.S. Mail
Idaho Public Utilities Commission Overnight Mail
472 W. Washington Street FAX
P.O. Box 83720
Boise, Idaho 83720-0074

R. Scott Pasley Hand Delivered
Assistant General Counsel x U.S. Mail
J.R. Simplot Company Overnight Mail
P.O. Box 27 FAX
Boise, Idaho 83707

David Hawk Hand Delivered
Director, Energy Natural Resources x U.S. Mail
J.R. Simplot Company Overnight Mail
P.O. Box 27 FAX
Boise, Idaho 83707

Peter J. Richardson Hand Delivered
Richardson & O’Leary, PLLC x U.S. Mail
99 East State Street, Suite 200 Overnight Mail
P.O. Box 1849 FAX
Eagle, Idaho 83616

William M. Eddie Hand Delivered
Land and Water Fund of the Rockies x U.S. Mail
P.O. Box 1612 Overnight Mail
Boise, Idaho 83701 FAX

______________________________________
LARRY D. RIPLEY