960417.docx

DECISION MEMORANDUM
TO:COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVID SCHUNKE
BEV BARKER
TONY JONES
LYNN ANDERSON
GARY RICHARDSON
WORKING FILE
FROM:WAYNE HART
RANDY LOBB
DATE:APRIL 17, 1996
RE:IDAHO POWER'S PROPOSAL TO DISCONTINUE THE CEILING INSULATION FINANCING PROGRAM; CASE NO. IPC-E-96-4.
PROPOSAL
Idaho Power proposes to discontinue their Ceiling Insulation Program on May 31.  This program, which was initially begun in 1978, provides below market rate financing for the installation of ceiling insulation to any customer of Idaho Power, regardless of whether they heat with electricity or not.  The loans made by Idaho Power were then sold to a bank, resulting in little or no net costs to the utility or ratepayers.
The Company is proposing to terminate the program because activity in the program has declined to only 24 projects in the past year, and because the bank that had purchased the loans in the past has indicated it will no longer do so.  The Company is faced with either financing and administering the program internally or finding another lender who will purchase these loans.
The Company has requested that this application be processed under Modified Procedure.
STAFF RECOMMENDATION
Staff has no objection to processing this application under Modified Procedure.  Staff does not expect significant comment, and believes that written comments should provide ample opportunity for the issues that may arise.
In preparing their comments on this application, Staff will discuss it with the Idaho Department of Water Resources which operates a similar program that may be impacted by this proposal.
COMMISSION DECISION
Should this application be processed under Modified Procedure?
Are there any parties to which the Commission desires that special notice of the application be provided?
________________________
Wayne Hart
________________________
Randy Lobb
wh:rl:gdk/ipce964.wh