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DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN JEAN JEWELL RON LAW BILL EASTLAKE LOU ANN WESTERFIELD GENE FADNESS LYNN ANDERSON DON HOWELL RANDY LOBB DAVE SCHUNKE KEITH HESSING TONYA CLARK TERRI CARLOCK ALDEN HOLM DAN GRAVES WORKING FILE FROM: LISA NORDSTROM DATE: MAY 22, 2002 RE: IDAHO POWER COMPANY'S PETITION FOR CLARIFICATION OF ORDER NO. 29026. CASE NOS. IPC-E-02-2 AND IPC-E-02-3. On May 13, 2002, the Commission issued Order No. 29026 that authorized PCA recovery of $244.4 million over a one-year period and deferred $11.5 million to be recovered solely from the Irrigation and Small General Service classes in the 2003-2004 PCA. Idaho Power subsequently filed a Petition for Clarification to clarify whether Order No. 29026 in these cases or Order No. 28992 in Case No. IPC-E-01-34 is the controlling Order as to the disallowance of irrigation load reduction lost revenues for reconsideration purposes. IDAHO POWER'S PETITION FOR CLARIFICATION On May 20, 2002, Idaho Power filed a Petition for Clarification in Case Nos. IPC-E-02-2/-3 to clarify which Order is the controlling decision on the disallowance of irrigation load reduction lost revenues. In its recent PCA Order, the Commission stated: This issue [recovery of lost revenue] 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. Order No. 29026 at 8. The Company understood this Order language as indicating 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." Petition at 2. Although Idaho Power believes the issue of disallowed lost revenue is properly before the Commission in Case No. IPC-E-01-34, the Company "does not desire to assume at its peril that this is the case. . . ." Id. at 2-3. Thus, Idaho Power 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. Id. at 3. The Company requests that the Commission render its Order as to this issue before the time for filing a petition for reconsideration has expired, so that Idaho Power may timely file if it is required to do so. Id. The deadline for Idaho Power to file a Petition for Reconsideration in Case No. IPC-E-02-2/-3 is Monday, June 3, 2002. As of the date of this Memorandum, no other party has filed responsive pleadings to the Company's Petition. COMMISSION DECISION Does the Commission wish to grant Idaho Power's Petition for Clarification specifying 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"? Lisa Nordstrom M:IPCE0202_03_clarify