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HomeMy WebLinkAbout20041101_980.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:WELDON STUTZMAN DATE:OCTOBER 27, 2004 RE:CASE NO. IPC-04- IDAHO POWER COMPANY'S APPLICATION TO RECOVER CLOUD SEEDING PROGRAM EXPENSES FOR THE 2004-2005 WINTER PERIOD On October 21 , 2004, Idaho Power Company filed an Application for an accounting order to allow recovery for costs of its cloud seeding program for the winter of 2004-2005. The Application states that the Company has operated a cloud seeding progra~ for a number of years and that the Commission did not allow recovery of its expenses in the Company s recent rate case. The Company filed with its Application additional infonnation that it asserts demonstrates scientifically measured benefits of the Company s cloud seeding program during the winter of 2003-2004. Noting that the Company has funded two years of cloud seeding without any cost recovery, the Application states Idaho Power would like to be able to recover its costs associated with continuing its program during the winter of 2004-2005. Idaho Power clarifies in its Application that it is not asking the Commission to defer expenditures associated with the cloud seeding program on a long-tenn basis, but is requesting only that the Commission authorize the Company to defer the expenses associated with the program during the upcoming winter. The Company estimates those costs to be approximately $950 000, which the Company proposes to capture "on the same ninety percent-ten percent (90%/10%) ratio by which other power supply expenses are shared between customers and shareholders in the PCA. Idaho Power included with its Application prefiled direct testimony to provide additional infonnation on the results of its cloud seeding program. The Company asks the Commission to process its Application by Modified Procedure, but states the Company "stands DECISION MEMORANDUM ready for immediate consideration of this Application if it is the Commission s detennination that hearings should be held. Staff recommends the Commission issue a Notice of Application and process the Application by Modified Procedure. COMMISSION DECISION Should the Application of Idaho Power Company for an accounting order for its cloud seeding program for the winter of 2004-2005 be processed by Modified Procedure? \) --- \...I\-' -- / Weldon Stutzman VldJM:IPC-O4-24 ws DECISION MEMORANDUM