HomeMy WebLinkAbout20040513Stipulation.pdfH t:' iLt~
......,.."
'-..,""""'J"'" IEOr-"I....\.- v' "-
. '
5 TO E L nl.~V i '
, ,
Dlt! ,Lt: 'f..iJU~ ria I 11'1
900 S.W. mlh Avenue. Suite 2600
Portland. Oregon 97204
main 503.224.3380UJ F'UHL1C
UTILITiES COMt11SS1Q,
fax 503.220.2480
www.stoeLcol11
ATTORNEYS i\T LAW
JAMES C. PAINE
Direct (503) 294-9246
j cpaine~stoe 1. com
May 12, 2004
HAND DELIVERED
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington
Boise, ill 83702-5983
Re:Stipulations in Case Nos. P AC-O3-05 and P AC-O4-
Dear Ms. Jewell:
Enclosed please fmd an original and 7 copies of: (a) a Stipulation in Case No. P AC-03-05 and
(b) a Supplemental Stipulation in the consolidated cases of Case No. PAC-03-05 and Case
No. P AC-04-02. Each Stipulation has been executed by PacifiCorp, Commission Staff, the
Idaho Irrigation Pumpers Association and the City of Firth, all of the active parties in each
proceeding known at the time of the submittal of these agreements.
PacifiCorp respectfully submits these Stipulations for the Commission s consideration.
PacifiCorp asserts that Commission approval of both of these Stipulations in their entirety is in
the public interest because, taken together, the Stipulations mitigate 1'?te impacts experienced by
customers while resolving the outstanding issues in Case No. P AC-O3-05 and P AC-04-02.
The April 30, 2004 Comments of Commission Staff in Case No. PAC-03-05 indicated that a
number of possible customer rate changes in PacifiCorp s Idaho retail rates could occur on
June 8, 2004. These changes include:
A proposed surcharge to recover tax audit assessment payments made by PacifiCorp in
2002 and 2003;
A proposed reduction in Idaho s Bonneville Power Administration exchange credit; and
Other rate changes scheduled to occur on June 8, 2004 include the expiration of the
Power Cost Surcharge (PCS), a small change in the Rate Mitigation Adjustment (RMA),
and a PCS true-up increment. These changes were approved by the Commission in Case
No. PAC-02-1 (Order No. 29034).
Oregon
Washington
Califoini3
U I a h
I d J h 0
PortJnd3-1480841.l 0020017-00055
ORIGINAL
Jean Jewell, Secretary
May 12, 2004
Page 2
Staff further stated that they believed that a comprehensive settlement could be reached that
would resolve all of these issues and result in a single rate change in 2004.
PacifiCorp submits that the two submitted Stipulations reflect that comprehensive settlement and
respectfully asks that the Commission consider and adopt both submitted agreements to be
reflected in the Company s Idaho retail rates, effective June 8, 2004.
Should you or any Commission representative have questions or concerns about PacifiCorp
filing or positions in these two consolidated dockets, please do not hesitate to contact James C.
Paine, attorney of record for the Company in this matter at (503) 294-9246, or Bob Lively,
Regulatory Manager at (801) 220-4052.
Very truly yours
, ,
James C. Paine
JCP:jlf
Enclosures
Portlnd3-1480841.l 0020017-00055
James F. Fell
James C. Paine
STOEL RIVES LLP
900 SW Fifth Ave., Suite 2600
Portland, OR 97204-1268
Telephone: (503) 294-9343
Facsimile: (503) 220-2480
RECf 1'1 EO
rH r:l)
~lI~~;A,( ~1 PM
4: 33
,;,
;' f'c \ tF)\ \
UT\L\l\ES COt1HlSS1ON
Attorneys for PacifiCorp
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PACIFICORP dba UTAH POWER &
LIGHT COMP Al~ FOR A DEFERRED
ACCOUNTING ORDER AND APPROVAL
OF A SURCHARGE
STIPULATION
CASE NO. P AC-03-
This stipulation ("Stipulation ) is entered into by and among PacifiCorp, doing business
as Utah Power & Light Company ("PacifiCorp" or the "Company ), the Idaho Public Utilities
Commission Staff ("Staff'), the Idaho Irrigation Pumpers Association ("lIP A") and the City of
Firth ("Firth") (collectively referred to as the "Parties
I. INTRODUCTION
The terms and conditions of this Stipulation are set forth herein. The Parties
agree that this Stipulation represents a fair, just and reasonable compromise of the issues raised
in this proceeding and that this Stipulation is in the public interest. The Parties, therefore
recornmend that the Public Utilities Commission ("Commission ) approve the Stipulation and all
of its terms and conditions. Reference IDAPA 31.01.01.272 274.
II. BACKGROUND
On March 31 , 2003 , PacifiCorp filed an Application in this case, seeking
approval of deferred accounting treatment for excess costs incurred for forward power purchases
made for the summer of 2002, and federal and state payments made in 2002 resulting from the
Internal Revenue Service s income tax audit for the years 1994-1998. Following the filing of its
STIPULATION - Page I
ORIGINAL
Application, the Company and Staffheld discussions regarding the Application and related
issues. During the course of those discussions, the Company made additional tax payments
following the completion of an administrative appeal with the IRS related to the 1994-1998
audit. Further, during the course of those discussions, it was detennined that an error existed in
the calculation of the Idaho-allocated portion of the payments made in 2002. When corrected
the payments made in 2002 and the payment made in October 2003 result in an Idaho-allocated
revenue requirement amount of $4 198 000.
On December 23 2003 , PacifiCorp filed an Amendment to its Application in this
case to correct the error referred to above and to add to its request for deferred accounting the
payments made in October, 2003 as a result of the completed appeal related to the 1994-1998
audit. The Company also included in the amended application a request for a surcharge to
recover the amounts for which deferred accounting is approved.
The Commission has previously approved mechanisms that allowed the Company
to recover amounts paid as a result of IRS audits where those amounts were paid for prior audit
periods. See In the Matter of the Investigation of the Effects of Revisions of the Federal Income
Tax Code Upon the Cost of Service of Regulated Utilities Case No. U-1500-164, Order No.
21302 (July 1 , 1987).
In Case No. PAC-02-, the Commission issued an Order on June 7, 2002
which among other things, allowed PacifiCorp to implement a power cost surcharge (PCS)
designed to recover an amount of excess power costs over a 24-month period beginning June 8
2002. The PCS was implemented as a line item charge on customers' bills through Electric
Service Schedule No. 93.
STIPULATION - Page 2
Pursuant to the Commission s February 4, 2004 Notice of Original and Amended
Application in this matter, the Parties have engaged in discussions with a view toward resolving
PacifiCorp s Application in this case.
PacifiCorp has claimed and sought recovery of approximately $4.2 million for
audit assessments. The Company asserts that the audit payments were prudently incurred and
are properly recoverable. The Parties have had settlement discussions regarding PacifiCorp
requests in this case and the other Parties ' positions in connection with that request.
Based upon the settlement discussions among the Parties, as a compromise of the
positions in this case, and for other consideration as set forth below, the Parties agree to the
following tenns:
III. TERMS OF THE STIPULATION
PacifiCorp shall be allowed to defer for regulatory purposes, and recover, through
a surcharge as described below, $4 198 000 for the income tax audit payments made in 2002 and
2003 for the audit years 1994-1998.
PacifiCorp shall be allowed to implement a surcharge (the "Surcharge ) designed
to recover approximately $4 379 018 ($4 198 000 related to audit payments discussed above plus
$181 018 from undercollection of the excess power costs allowed by the Commission in Case
No. P AC-02-1) over the period beginning June 8, 2004 and ending September 15 , 2005. The
Surcharge will be implemented as a line item charge on customers' bills through Electric Service
Schedule No. 93 , attached hereto as Attachment A. The amount to be collected through the
Surcharge includes the true-up provided for under Order No.2 90 34 in Case No. P A C- E-02-
The Parties agree that the revenue obligations of the various customer classes shall be spread
among the classes in the manner described in Attachment B.
STIPULATION - Page 3
10.PacifiCorp shall not file any application with the Commission that may result in
an increase in or surcharge on PacifiCorp s rates to Idaho retail customers that would become
effective prior to September 16, 2005. Except as provided in paragraph 12 below this provision
shall not preclude the Company from requesting deferral of costs incurred after the date of this
stipulation and prior to September 16, 2005 for consideration by the Commission in an
appropriate regulatory proceeding for collection from customers beginning on or after September
, 2005.
11.PacifiCorp shall file as part of its next general rate case in Idaho a proposed
method of recovering payments required as a result of income tax audits, other than through
surcharges.
12., prior to September 16, 2005, PacifiCorp makes any payments of federal or
state income tax assessments, or both, as a result of IRS audits, PacifiCorp shall not seek
recovery of such payments in Idaho except through a general rate case.
13.The Parties agree that this Stipulation represents a compromise of the positions of
the Parties in this case. Other than the above referenced positions and any testimony filed in
support of the approval of this Stipulation, and except to the extent necessary for a Party to
explain before the Commission its own statements and positions with respect to the Stipulation
all negotiations relating to this Stipulation shall be treated as confidential.
14.The Parties submit this Stipulation to the Commission and recommend approval
in its entirety pursuant to IDAP A 31.01.01.274. Parties shall support this Stipulation before the
Commission, and no Party shall appeal any portion of this Stipulation or Order approving the
same. If this Stipulation is challenged by any person not a party to the Stipulation, the Parties to
this Stipulation reserve the right to cross-examine witnesses and put on such case as they deem
STIPULATION - Page 4
appropriate to respond fully to the issues presented, including the right to raise issues that are
incorporated in the settlements embodied in this Stipulation. Notwithstanding this reservation of
rights, the Parties to this Stipulation agree that they will continue to support the Commission
adoption of the terms of this Stipulation.
15.In the event the Commission rejects any part or all of this Stipulation, or imposes
any additional material conditions on approval of this Stipulation, each Party reserves the right
upon written notice to the Commission and the other Parties to this proceeding, within 15 days of
the date of such action by the Commission, to withdraw from this Stipulation. In such case, no
Party shall be bound or prejudiced by the terms of this Stipulation, and each Party shall be
entitled to seek reconsideration of the Commission s order, file testimony as it chooses, cross-
examine witnesses, and do all other things necessary to put on such case as it deems appropriate.
16.The Parties agree that this Stipulation is in the public interest and that all of its
terms and conditions are fair, just and reasonable.
17.No Party shall be bound, benefited or prejudiced by any position asserted in the
negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this
Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly
waived herein. Execution of this Stipulation shall not be deelned to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method, theory or
principle of regulation or cost recovery, and no Party shall be deemed to have agreed that any
method, theory or principle of regulation or cost recovery employed in arriving at this Stipulation
is appropriate for resolving any issues in any other proceeding in the future. No findings of fact
or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
STIPULATION - Page 5
18.The obligations of the Parties under this Stipulation are subject to the
Commission s approval of this Stipulation in accordance with its terms and conditions and upon
such approval being upheld on appeal by a court of competent jurisdiction.
Respectfully submitted this /~day of , 2004.
PacifiCorp
By
~~
I/o 1;;& nv fiv-
James Paine
Attorney for PacifiCorp
Idaho Public Utilities Commission Staff
Sco t D. Woodbury
Attorney for Idaho Public Utiliti
Commission Staff
ric L. Olsen
Attorney for Idaho Irrigation Pumpers
Association
City of Firth
A "
By
Mike Kress
Mayor
K~~
STIPULATION - Page 6
Blah
nlJlM
I Attachment A
C. No. 28
First Revised Sheet No.
Canceling Original Sheet No. 93
UT AH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 93
STATE OF IDAHO
POWER COST / TAX SURCHARGE (C)
A V AaABaITY: At any point on the Company s interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the tenns contained in this Tariff.
MONT~ Y BaL: In addition to the Monthly Charges contained in the Customer s applicable
schedule, all monthly bills shall have applied an amount equal to the product of all metered kilowatt-hours
multiplied by the following cents per kilowatt-hour.(D)
(D)
Schedule 1
Schedule 6
Schedule 6A
Schedule 7
Schedule 7 A
Schedule 8
Schedule 9
Schedule 10
Schedule 11
Schedule 12 - Street Lighting
Schedule 12 - Traffic Signal
Schedule 19
Schedule 23
Schedule 23A
Schedule 35
Schedule 36
3823 ~
0.1196 ~
0000 ~
5853 ~
6468 ~
0000 ~
0899 ~
1696 ~
1.7652 ~
7738 ~
6015 ~
0.4345 ~
5298 ~
5453 ~
0.1004 ~
0814 ~
(N)
(N)
Submitted Under Docket No. P AC-03-
ISSUED:December 23 , 2003 EFFECTIVE: June 8, 2004
Ta
b
l
e
A
Att
a
c
h
m
e
n
t
UT
A
H
P
O
W
E
R
ES
T
I
M
A
T
E
D
E
F
F
E
C
T
O
F
P
R
O
P
O
S
E
D
P
R
I
C
E
S
ON
R
E
V
E
N
U
E
S
F
R
O
M
E
L
E
C
T
R
I
C
S
A
L
E
S
T
O
U
L
T
I
M
A
T
E
C
O
N
S
U
M
E
R
S
DI
S
T
R
I
B
U
T
E
D
B
Y
R
A
T
E
S
C
H
E
D
U
L
E
S
I
N
I
D
A
H
O
NO
R
M
A
L
I
Z
E
D
1
2
M
O
N
T
H
S
E
N
D
E
D
M
A
R
C
H
2
0
0
3
Pr
e
s
e
n
t
R
e
v
e
n
u
e
(
$
0
0
0
)
Pr
o
p
o
s
e
d
Ex
c
l
u
s
i
v
e
o
f
8
c
h
.
3
4
In
c
l
u
s
i
v
e
o
f
8
c
h
.
3
4
Av
g
o
Li
n
e
Ac
c
t
Sc
h
o
No
o
Ba
s
e
RM
A
PC
S
Sc
h
.
Ne
t
RM
A
Sc
h
9
3
3
,
Sc
h
.
3
4
Pr
o
p
o
s
e
d
Ch
a
n
~
e
Pr
o
p
o
s
e
d
Ch
a
n
~
e
No
.
No
o
De
s
c
r
i
ti
o
n
No
o
Cu
s
t
MW
h
Re
v
.
Cr
e
d
i
t
Re
v
o
$0
0
0
Cr
e
d
i
t
Ne
t
R
e
v
o
($
0
0
0
)
Ne
t
R
e
v
o
($
0
0
0
)
(1
)
(2
)
(3
)
(4
)
(5
)
(6
)
(7
)
(8
)
(9
)
(1
0
)
(1
1
)
(1
2
)
(1
3
)
(1
4
)
(1
5
)
(1
6
)
(1
7
)
(1
8
)
(1
9
)
(2
0
)
44
0
Re
s
i
d
e
n
t
i
a
l
S
a
l
e
s
Re
s
i
d
e
n
t
i
a
l
S
e
r
v
i
c
e
15
2
28
3
33
0
$2
4
,
29
5
($
1
14
2
)
19
0
($
7
08
5
)
$1
7
,
25
8
($
1
97
5
)
08
3
68
%
($
6
,
60
9
)
$2
3
40
3
($
9
4
0
)
$1
6
,
79
4
($
4
6
4
)
Re
s
i
d
e
n
t
i
a
l
O
p
t
i
o
n
a
l
T
O
D
98
7
28
7
38
3
$1
9
,
6
7
2
($
1
15
5
)
20
7
($
7
,
18
6
)
$1
2
53
8
($
6
9
3
)
$2
3
4
1.2
6
%
($
6
,
70
4
)
$1
9
,
21
3
($
5
1
1
)
$1
2
50
9
($
2
9
)
AG
A
-
Re
v
e
n
u
e
00
%
To
t
a
l
R
e
s
i
d
e
n
t
i
a
l
13
8
57
0
71
3
$4
3
97
0
($
2
29
7
)
39
7
($
1
4
27
1
)
$2
9
,
79
9
($
2
66
8
)
31
7
16
%
($
1
3
,
31
3
)
$4
2
62
0
($
1
45
1
)
$2
9
30
7
($
4
9
2
)
1.
7
%
44
2
Co
m
m
e
r
c
i
a
l
&
I
n
d
u
s
t
r
i
a
l
Ge
n
e
r
a
l
S
e
r
v
i
c
e
-
L
a
r
g
e
P
o
w
e
r
96
8
30
1
53
5
$1
6
,
55
2
($
8
7
5
)
26
0
$1
6
,
93
7
$3
6
1
30
%
$1
6
,
91
3
($
2
4
)
0.1
%
$1
6
,
91
3
($
2
4
)
Ge
n
e
r
a
l
S
v
c
,
-
L
g
,
P
o
w
e
r
(
R
&
F
)
22
6
99
8
83
4
($
1
1
3
)
$1
2
2
($
7
2
5
)
11
8
00
%
($
6
7
6
)
83
4
($
9
)
0.
5
%
15
8
$4
0
Ge
n
e
r
a
l
S
e
r
v
i
c
e
-
M
e
d
,
V
o
l
t
a
g
e
99
0
$1
7
0
($
1
0
)
$1
2
$1
7
2
00
%
$1
7
7
$1
7
7
Ge
n
e
r
a
l
S
e
r
v
i
c
e
-
H
i
g
h
V
o
l
t
a
g
e
86
7
04
8
($
2
9
0
)
$3
8
2
14
0
$8
6
2.2
9
%
13
4
($
6
)
13
4
($
6
)
Ir
r
i
g
a
t
i
o
n
23
6
60
6
,
4
6
0
$3
2
47
1
94
0
54
7
($
2
0
48
6
)
$1
8
47
3
$3
,
94
0
02
9
83
%
($
1
9
,
02
4
)
$3
7
44
0
($
1
5
I
8
)
$1
8
,
4
1
6
($
5
6
)
Co
m
m
,
&
I
n
d
,
S
p
a
c
e
H
e
a
t
i
n
g
33
5
64
6
$8
3
4
($
3
1
)
$4
9
$8
5
2
($
7
5
)
$5
1
30
%
$8
1
0
($
4
2
)
$8
1
0
($
4
2
)
Ge
n
e
r
a
l
S
e
r
v
i
c
e
95
0
57
2
$7
,
99
5
($
2
0
9
)
$3
8
9
17
5
($
1
19
1
)
$4
9
0
30
%
29
4
($
8
8
1
)
10
,
29
4
($
8
8
1
)
10
,
Ge
n
e
r
a
l
S
e
r
v
i
c
e
(
R
&
F
)
23
A
30
4
40
7
39
4
($
6
0
)
$6
5
($
3
8
5
)
01
3
($
1
6
3
)
$8
4
30
%
($
3
5
9
)
31
5
($
8
4
)
$9
5
6
($
5
8
)
Ge
n
e
r
a
l
S
e
r
v
i
c
e
O
p
t
i
o
n
a
l
T
O
D
88
7
$1
0
6
($
6
)
$1
0
8
1.9
0
%
$1
0
8
($
0
)
$1
0
8
($
0
)
Sp
e
c
i
a
l
C
o
n
t
r
a
c
t
s
1,
4
8
1
15
9
$4
5
,
31
1
$4
5
,
31
1
00
%
$4
5
31
1
$4
5
,
31
1
AG
A
-
Re
v
e
n
u
e
$2
3
4
$2
3
4
00
%
$2
3
4
$2
3
4
To
t
a
l
C
o
m
m
e
r
c
i
a
l
&
I
n
d
u
s
t
r
i
a
l
10
,
Q
3
8
63
8
,
52
3
$1
1
0
94
9
34
6
83
4
($
2
1
59
6
)
$9
6
53
3
51
8
10
3
86
%
($
2
0
05
9
)
$1
1
5
,
57
0
($
2
55
9
)
$9
5
,
51
1
($
1
02
2
)
1.1
%
44
4
Pu
b
l
i
c
S
t
r
e
e
t
L
i
l
!
h
t
i
n
l
!
Se
c
u
r
i
t
y
A
r
e
a
L
i
g
h
t
i
n
g
24
1
30
4
$7
6
$7
7
($
2
0
)
30
%
$6
1
($
1
6
)
20
,
$6
1
($
1
6
)
20
,
Se
c
u
r
i
t
y
A
r
e
a
L
i
g
h
t
i
n
g
(
R
&
F
)
16
3
12
9
$3
5
($
1
)
($
3
)
$3
1
($
8
)
6.3
0
%
($
3
)
$2
9
($
6
)
17
,
$2
6
($
6
)
18
.
St
r
e
e
t
L
i
g
h
t
i
n
g
-
C
o
m
p
a
n
y
12
8
$3
7
($
1
)
$3
7
($
1
0
)
30
%
$2
9
($
8
)
21
,
$2
9
($
8
)
21
,
St
r
e
e
t
L
i
g
h
t
i
n
g
-
C
u
s
t
o
m
e
r
20
4
80
8
$2
2
8
($
6
)
$2
3
0
($
6
3
)
$1
4
30
%
$1
7
9
($
5
1
)
22
,
$1
7
9
($
5
1
)
22
,
Tr
a
f
f
i
c
S
i
g
n
a
l
S
y
s
t
e
m
s
25
3
$2
5
($
1
)
$2
5
($
7
)
30
%
$2
0
($
5
)
21
,
$2
0
($
5
)
21
,
AG
A
-
Re
v
e
n
u
e
00
%
To
t
a
l
P
u
b
l
i
c
S
t
r
e
e
t
L
i
g
h
t
i
n
g
66
0
62
1
$4
0
3
($
9
)
$1
2
($
3
)
$4
0
3
($
1
0
8
)
$2
5
6.
2
7
%
($
3
)
$3
2
0
($
8
6
)
21
,
$3
1
7
($
8
6
)
21
.
4
%
To
t
a
l
S
a
l
e
s
t
o
U
l
t
i
m
a
t
e
C
u
s
t
o
m
e
r
s
56
,
83
6
21
1
85
7
$1
5
5
32
3
$4
0
24
3
($
3
5
,
87
1
)
$1
2
6
73
5
($
2
5
8
)
44
5
22
%
($
3
3
,
37
5
)
$1
5
8
50
9
($
4
09
6
)
$1
2
5
,
13
4
($
1
60
1
)
1.
3
%
To
t
a
l
S
a
l
e
s
t
o
U
l
t
i
m
a
t
e
C
u
s
t
o
m
e
r
s
(
w
/
o
S
p
e
c
i
a
l
C
o
n
t
r
a
c
t
s
)
56
,
83
4
73
0
,
69
8
$1
1
0
,
01
1
$4
0
24
3
($
3
5
,
87
1
)
$8
1
42
4
($
2
5
8
)
$3
,
44
5
13
%
($
3
3
,
37
5
)
$1
1
3
,
19
8
($
4
09
6
)
3.
5
%
$7
9
,
82
3
($
1
60
1
)
No
t
e
s
:
1 :
P
r
e
s
e
n
t
R
e
v
e
n
u
e
i
s
b
a
s
e
d
o
n
c
u
r
r
e
n
t
R
M
A
a
n
d
P
C
S
r
a
t
e
s
w
h
i
c
h
b
e
c
a
m
e
e
f
f
e
c
t
i
v
e
o
n
J
u
n
e
8
,
2
0
0
3
a
n
d
w
i
l
l
e
x
p
i
r
e
o
n
J
u
n
e
7
,
2
0
0
4
,
T
h
e
c
u
r
r
e
n
t
B
P
A
r
a
t
e
b
e
c
a
m
e
e
f
f
e
c
t
i
v
e
o
n
Fe
b
r
u
a
r
y
1
, 2
0
0
3
,
2:
P
r
o
p
o
s
e
d
R
M
A
i
s
b
a
s
e
d
o
n
Y
e
a
r
3
r
a
t
e
s
w
h
i
c
h
w
i
l
l
b
e
c
o
m
e
e
f
f
e
c
t
i
v
e
o
n
J
u
n
e
8
,
2
0
0
4
,
3:
P
r
o
p
o
s
e
d
S
c
h
,
9
3
P
o
w
e
r
C
o
s
t
/
T
a
x
S
u
r
c
h
a
r
g
e
i
s
d
e
s
i
g
n
e
d
t
o
r
e
c
o
v
e
r
a
t
o
t
a
l
o
f
$
4
37
9
,
01
8
b
e
t
w
e
e
n
J
u
n
e
8
,
2
0
0
4
a
n
d
S
e
p
t
e
m
b
e
r
1
5
20
0
5
,
T
h
i
s
a
m
o
u
n
t
i
n
c
l
u
d
e
s
$
4
19
8
,
00
0
o
f
i
n
c
o
m
e
t
a
x
a
u
d
i
t
p
a
y
m
e
n
t
s
pl
u
s
$
1
8
1
,
01
8
o
f
t
h
e
p
r
o
j
e
c
t
e
d
u
n
r
e
c
o
v
e
r
e
d
p
o
r
t
i
o
n
o
f
c
o
m
b
i
n
e
d
b
a
l
a
n
c
e
o
f
e
x
i
s
t
i
n
g
S
c
h
e
d
u
l
e
9
3
-
Po
w
e
r
C
o
s
t
S
u
r
c
h
a
r
g
e
a
n
d
S
c
h
e
d
u
l
e
9
4
-
RM
A
,
T
h
e
p
r
o
j
e
c
t
i
o
n
i
s
b
a
s
e
d
o
n
a
c
t
u
a
l
c
o
l
l
e
c
t
i
o
n
s
b
e
t
w
e
e
n
Ju
n
e
8
,
2
0
0
2
-
Fe
b
r
u
a
r
y
2
9
20
0
4
a
n
d
t
h
e
f
o
r
e
c
a
s
t
e
d
c
o
l
l
e
c
t
i
o
n
s
b
e
t
w
e
e
n
M
a
r
c
h
1
,
2
0
0
3
-
Ju
n
e
7
,
2
0
0
4
4:
P
r
o
p
o
s
e
d
a
B
P
A
B
a
l
a
n
c
e
a
d
j
u
s
t
m
e
n
t
o
f
-
$1
,
9 m
i
l
l
i
o
n
,
5:
P
r
o
p
o
s
e
d
S
c
h
9
3
r
a
t
e
d
e
s
i
g
n
i
s
b
a
s
e
d
o
n
t
w
o
r
u
l
e
s
:
R
u
l
e
I
:
O
v
e
r
a
l
l
i
m
p
a
c
t
f
o
r
e
a
c
h
s
c
h
e
d
u
l
e
i
s
c
a
p
p
e
d
a
t
0
%
o
r
i
t
is
r
e
d
u
c
e
d
u
n
t
i
l
s
c
h
e
d
u
l
e
9
3
r
e
v
e
n
u
e
i
s
s
e
t
a
t
z
e
r
o
,
R
u
l
e
2
:
M
a
x
%
S
c
h
9
3
i
s
c
a
p
p
e
d
a
t
6
,
3 %
,
Fo
n
n
u
l
a
s
:
F
I
=
(
6
)
+
(
7
)
+
(
8
)
+
(
9
)
;
F
2
=
(
1
2
)
/
f
(
6
)
+
(
7
H
;
F
3
=
(
6
)
+
(
l
I
)
+
(
1
2
)
;
F
4
=
(
l
5
)
-
(6
)
-
(
7
)
-
(
8
)
;
F
5
=
(
1
6
)
/
f
(
6
)
+
(
7
)
+
(
8
)
)
;
F
6
=
(
6
)
+
(
I
I
)
+
(
l
2
)
+
(
l
4
)
;
F7
=
(
1
8
)
-
(
I
O
)
;
F
8
=
(
l
9
)
/
(
I
O
)
.
CERTIFICATE OF SERVICE
I hereby certify that on this ih day of May, 2004, I served the foregoing
STIPULATION as follows:
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington
O. Box 83720
Boise, ID 83702
(~J Hand Delivery
(~
U. S. Mail
Overnight Delivery
Facsimile
J Email
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington
O. Box 83720
Boise, ill 83702
(~J Hand Delivery
J U. S. Mail
Overnight Delivery
Facsimile
J Email
Eric Olsen
Racine, Olson, Nye, Budge & Bailey
O. Box 1391
201 East Center
Pocatello, ill 83204-1391
J Hand Delivery(~J U. S. Mail
Overnight Delivery
Facsimile
Email
Mike Kress
Mayor
City of Firth
O. Box 37
Firth, ill 83236
J Hand Delivery(~J U. S. Mail
(~
Overnight Delivery
Facsimile
Email
Timothy J. Shurtz
City Councilman
City of Firth
O. Box 37
Firth, ill 83236
J Hand Delivery(~J U. S. Mail
Overnight Delivery
Facsimile
(~
Email
iJf!Brandi L. Gearhart, PLS
Legal Assistant to Mary S. Hobson
Stoel Rives LLP
James F. Fell
James C. Paine
Stoel Rives LLP
900 SW Fifth Avenue, Suite 2600
Portland, OR 97204-1268
Telephone: (503) 294-9343
Facsimile: (503) 220-2480
Attorneys for PacifiCorp
, ("t:" HI
, '
t\~vL.J "
F~tLED
2Uult KAY \ 2 PM ~:51
.... ' .
,i"l)1J
r1-:~ COf'1filSStOH;:)\\ 1,
-.;
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP dba UTAH POWER &
LIGHT COMPANY FOR A DEFERRED
ACCOUNTING ORDER AND APPROV AL
OF A SURCHARGE
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP dba UTAH POWER &
LIGHT COMPANY FOR APPROVAL
OF REDUCTIONS IN BONNEVILLE
POWER ADMINISTRATION REGIONAL
EXCHANGE CREDITS
CASE NO. P AC-03-
CASE NO. P AC-04-
SUPPLEMENTAL STIPULATION
This Supplemental Stipulation ("Stipulation ) is entered into by and among PacifiCorp,
doing business as Utah Power & Light Company ("PacifiCorp" or the "Company ), the Idaho
Public Utilities Commission Staff ("Staff'), the Idaho Irrigation Pwnpers Association ("IIP A"
and the City of Firth, Idaho ("Firth") (collectively referred to as the "Parties
INTRODUCTION
The terms and conditions of this Stipulation are set forth herein. The Parties
agree that this Stipulation represents a fair, just and reasonable resolution of the issues raised in
Case No. P AC-O3-05 and Case No. P AC-04-02 and that this Stipulation is in the public
interest. The Parties, therefore, recommend that the Public Utilities Commission (the
SUPPLEMENTAL STIPULATION - Page Portlnd3-\479538.\0020017-00055
CR\GINAL
Commission ) approve the Stipulation and all of its terms and conditions. Reference
IDAP A 31.01.01.272-276.
II.BACKGROUND
On April 21 , 2004, PacifiCorp filed its Application in Case No. PAC-04-
seeking approval of a revised Electric Service Schedule No. 34. The proposed revisions would
reduce the Bonneville Power Administration regional exchange credits ("BP A exchange credit"
in Idaho. The Company s Application seeks changes to Schedule 34 to revise the Kilowatt-Hour
Credit Adjustment for all qualifying kilowatt-hours of residential and/or farm use.
Accompanying the Company s Application was a Motion to Consolictate consideration of the
BP A exchange credit docket with PacifiCorp s previously-filed tax audit proceeding, Case
No. PAC-03-05. The Commission granted the Company s Motion to Consolidate on May 5
2004. Order No. 29489.
PacifiCorp asserts that as of September 2003, the Idaho balancing account showed
a BP A exchange credit deficit of $5.7 million. Following discussions with the Staff, the IIP A
irrigation customers and Firth, PacifiCorp proposes to reduce the BP A exchange credit by 1/3 of
the $5.7 million, on an annual basis, thereby recovering the negative balance over a three-year
period.
In addition, PacifiCorp s Application proposes to reduce the BP A exchange credit to
match the level of the annual credit received from the BP A with the annual credit passed on to
Idaho residential and small farm customers. This reduces the credit by an additional $597 000
per year.
The annual reduction in the BPA credit would therefore total $2,496 000 ($1 899 000 +
$597 000) under PacifiCorp s proposal.
SUPPLEMENTAL STIPULATION - Page 2 Portlnd3-1479538,10020017-00055
On March 31 , 2003, as amended on December 23, 2003, the Company filed its
Application (Case No. P AC-03-05) seeking, among other things, a surcharge to recover
federal and state tax audit assessment payments resulting from Internal Revenue Service tax
audits. A Stipulation (the "Tax Audit Assessment Stipulation ) entered into by and among
PacifiCorp, Staff, IIP A and Firth was executed and addressed, among other things
implementation of a new 16-month surcharge of approximately $3.5 million annually to recover
a total of $4.2 million of tax audit assessments. Staff executed the Tax Audit Assessment
Stipulation on May 6, 2004.
The Company s April 21 , 2004 Application to reduce the BP A exchange credit
(Case No. P AC-04-02) was anticipated and addressed by the Parties executing the Tax Audit
Assessment Stipulation in Case No. PAC-03-05. Table A of the Tax Audit Assessment
Stipulation incorporates the proposed BP A exchange credit reduction of $2.496 million/year
from the proposed effective date of June 8 , 2004. For this reason, this Stipulation addressing
BP A regional credit reduction issues is designated a "Supplemental" Stipulation. It is the
Parties' intent in this Supplemental Stipulation to further describe the proposed manner in which
PacifiCorp will attempt to reduce the balancing account deficit.
III.TERMS OF THE STIPULATION
The Parties have considered the proposed BP A exchange credit treatment set forth
in PacifiCorp s April 21, 2004 Application and find the Company s proposal to be just and
reasonable. The Parties agree that PacifiCorp shall be allowed to reduce the BP A exchange
credit reflected in the Company s proposed Schedule 34, commencing June 8, 2004. As noted
above, the Tax Audit Assessment Stipulation already reflects the initial BP A exchange credit
reduction proposed in PacifiCorp s April 21 , 2004 filing of Case No. PAC-04-02.
SUPPLEMENTAL STIPULATION -Page 3 Portlnd3-1479538,l 0020017-00055
The Parties recognize that the level of the BPA credits is subject to the actions of the
BP A and to other circumstances largely beyond the control of the Company. The Company will
continue to work to mitigate the impacts of future changes to the BP A credit. The Parties
recognize that, among other factors, qualifying customer loads actually experienced may not
reduce the balancing account deficit as anticipated. In order to realize a zero (or as near zero as
practical) balancing account by September 30, 2006, the Parties recognize that PacifiCorp may
have to propose further modifications to Schedule 34 based on its actual experience in attempting
to reduce the deficit balance, or due to BP A actions that may influence the BP A exchange credit
for Idaho s qualifying customers. The Parties therefore agree that PacifiCorp shall propose, and
implement as approved by the Commission adjustments to Schedule 34, as necessary, in order to
achieve the targeted zero balancing account by September 30, 2006.
PacifiCorp will convene informational meetings with Idaho irrigators in the
November/December time frame of 2004 and 2005 in an effort to inform interested stakeholders
of the state of the balancing account, the anticipated magnitude of the BP A exchange credit for
the next irrigation season, of any other relevant factors that the Company anticipates may
influence Idaho s BP A exchange credit, the status of any anticipated or pending rate case and the
status and/or report on the Irrigation Load Control Credit Rider Program. The informational
meetings will provide irrigators with electric power cost infonnation enabling the irrigators to
plan for the next irrigation season with a more informed position on their potential electricity
costs.
PacifiCorp will work with Staff and other interested stakeholders prior to filing proposed
adjustments to Schedule 34, filing any anticipated rate case or filing proposed adjustments to
Schedule 72.
SUPPLEMENT AL STIPULATION - Page 4 Portlnd3-1479538.l 0020017-00055
With Commission approval, PacifiCorp should implement the proposed BPA
exchange credit reduction on June 8, 2004 as this date coincides with other rate changes viz.the
expiration ofPacifiCorp s power cost surcharge authorized in Case No. PAC-O2-01 and the
proposed initiation of a surcharge for tax audit assessments addressed in Case No. P AC-O3-05.
The Parties agree that this Stipulation represents a just and reasonable resolution
of the issues generated by the Company s BPA exchange credit Application of April 21 , 2004.
Other than the above referenced positions and any testimony or comments filed in support of the
approval of this Stipulation, and except to the extent necessary for a Party to explain before the
Commission its own statements and positions with respect to the Stipulation, all negotiations
relating to this Stipulation shall be treated as confidential.
The Parties submit this Stipulation to the Commission and recommend approval
in its entirety pursuant to IDAP A 31.01.01.274. Parties shall support this Stipulation before the
Commission, and no Party shall appeal any portion of this Stipulation or Order approving the
same. If this Stipulation is challenged by any person not a party to the Stipulation, the Parties to
this Stipulation reserve the right to cross-examine witnesses and put on such case as they deem
appropriate to respond fully to the issues presented, including the right to raise issues that are
incorporated in the settlements embodied in this Stipulation. Notwithstanding this reservation of
rights, the Parties to this Stipulation agree that they will continue to support the CoI1lll1ission
adoption of the tenns of this Stipulation.
10.In the event the Con1mission rejects any part or all of this Stipulation, or imposes
any additional material conditions on approval of this Stipulation, each Party reserves the right
upon written notice to the Commission and the other Parties to this proceeding, within 15 days of
the date of such action by the Commission, to withdraw from this Stipulation. In such case, no
SUPPLEMENTAL STIPULATION - Page 5 Portlnd3-1479538.10020017-00055
Party shall be bound or prejudiced by the terms of this Stipulation, and each Party shall be
entitled to seek reconsideration of the Commission s order, file testimony as it chooses, cross-
examine witnesses, and do all other things necessary to put on such case as it deems appropriate.
11.The Parties agree that this Stipulation is in the public interest and that all of its
terms and conditions are fair, just and reasonable.
12.No Party shall be bound, benefited or prejudiced by any position asserted in the
negotiation of this Stipulation, except to the extent expressly stated herein, nor shall this
Stipulation be construed as a waiver of the rights of any Party unless such rights are expressly
waived herein. Execution of this Stipulation shall not be deemed to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method, theory or
principle of regulation or cost recovery, and no Party shall be deemed to have agreed that any
method, theory or principle of regulation or cost recovery employed in arriving at this Stipulation
is appropriate for resolving any issues in any other proceeding in the future. No findings of fact
or conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
13.The obligations of the Parties under this Stipulation are subject to the
Commission s approval of this Stipulation in accordance with its terms and conditions and upon
such approval, if challenged, being upheld on appeal by a court of cOlnpetent jurisdiction.
Respectfully submitted this day of May, 2004.
PacifiCorp
~) /----,/',
13J'--- -
;;.?--~/.:.--- (....----
or C"-,_-M-\..
James CtYmne
Attorney for PacifiCorp
SUPPLEMENTAL STIPULATION - Page 6 Portlnd3-14795380 1 0020017-00055
Idaho Public Utilities Commission Staff
. n umpers A~sociation
Eric L. Olsen
Attorney for Idaho Irrigation Pumpers Association
City of Firth
By L""
Mike Kress
Mayor
SUPPLEMENTAL STIPULATION - Page 7 Portlnd3-1479538.1 0020017-00055
CERTIFICATE OF SERVICE
I hereby certify that on this lih day of May, 2004, I served the foregoing
SUPPLEMENTAL STIPULATION as follows:
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington
o. Box 83720
Boise, ill 83702
LXJ Hand Deli very
J U. S. Mail
Overnight Delivery
Facsimile
J Email
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington
O. Box 83720
Boise, ill 83702
(~J Hand Deli very
J U. S. Mail
Overnight Delivery
Facsimile
J Email
Eric Olsen
Racine, Olson, Nye, Budge & Bailey
O. Box 1391
20 I East Center
Pocatello, ill 83204-1391
J Hand Delivery(~J U. S. Mail
Overnight Delivery
Facsimile
J Email
Mike Kress
Mayor
City of Firth
O. Box 37
Firth, ID 83236
J Hand Delivery(~J U. S. Mail
Overnight Delivery
(~
Facsimile
Email
Timothy J. Shurtz
City Councilman
City of Firth
O. Box 37
Firth, ill 83236
Hand Delivery(~J U. S. Mail
Overnight Delivery
Facsimile
J Email
Brandi L. Gearhart, PLS
Legal Assistant to Mary S. Hobson
Stoel Rives LLP