HomeMy WebLinkAboutOrder No 28804.pdfOffice of the Secretary
Service Date
August 15, 2001
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY TO DISCONTINUE
COST INFORMATION FILING AND
SUSPENSION OF FILING DATE PENDING
COMMISSION DETERMINATION.
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CASE NO. IPC-E-01-18
IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION DBA AVISTA
UTILITIES FOR EXTENSION OF FILING DATE
FOR COST INFORMATION REPORT.
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CASE NO. AVU-E-01-9
IN THE MATTER OF THE APPLICATION OF
PACIFICORP TO DISCONTINUE COST
INFORMATION FILING AND SUSPENSION OF
FILING DATE PENDING COMMISSION
DETERMINATION.
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CASE NO. PAC-E-01-9
JOINT ORDER NO. 28804
On May 18, 2001, Idaho Power Company filed an Application that requested
Commission authorization to discontinue the filing of the annual cost information-unbundling report
(“cost report”). Idaho Power also requested suspension of the July 1, 2001 filing date for this cost
report until the Commission made a decision on its Application. On June 5, 2001, Avista
Corporation dba Avista Utilities (“Avista”) filed a Motion for an Extension of the Filing Date for its
unbundled cost report. The Commission has chosen to treat this motion as an Application under the
Commission’s Rules of Procedure. See Order No. 28749. On June 8, 2001, PacifiCorp filed an
Application identical to Idaho Power’s Application.
Because the issues presented in these Applications are identical the Commission issued a
Joint Notice of Application, Joint Notice of Modified Procedure. Order No. 28749. This Order also
suspended the filing date for this year's cost reports for 60 days from July 1, 2001, or until the
Commission issued an order resolving this matter. The Commission also established deadlines for
written comments and reply comments. The Commission Staff, Avista and Idaho Power filed
written comments.
ORDER NO. 28804 1
ORDER NO. 28804 2
This Order constitutes the Commission’s decision regarding the issues raised by the
Companies’ Applications.
BACKGROUND
In 1997 the Legislature enacted Chapter 403, Session Laws of Idaho 1997, pp. 1279-
1281, creating Idaho Code §§ 61-338 and 61-339. Under these sections, electric suppliers in the
state of Idaho with over 1,000 customers were required to file unbundled cost information with the
Commission. The Legislature determined that such cost information shall be separated among
utility functions consisting, at a minimum, of generation, transmission and distribution services and
including other categories as the Commission may require.
In response to Idaho Code §§ 61-338 and 61-339 the Commission commenced Case
No. GNR-E-97-1, which ultimately provided for the method and manner by which these cost reports
would be compiled and submitted. See Order No. 27211. As an outgrowth of Case
No. GNR-E-97-1, the Commission instituted three separate proceedings for Idaho Power Company,
Avista Utilities and PacifiCorp. See Case Nos. IPC-E-98-2, UPL-E-98-1 and WWP-E-98-1. The
Commission in the final Orders in these cases required that the Companies submit cost reports with
updated cost information on or before July 1 of every year. See Order Nos. 27676, 27678 and
27679.
Idaho Code §§ 61-338 and 61-339 as enacted provided that these sections would become
null and void and of no force and effect on and after January 1, 1999. Accordingly, these
Companies have requested that the Commission authorize them to discontinue the filing of their
annual cost reports. The Companies contend that preparation of these cost reports is time consuming
and that the reports are of little value to the Commission’s regulatory process. The Companies
submit that it is in the public interest to permit them to discontinue the filing of this report. In the
event that the Commission does not grant the Companies’ requests, PacifiCorp asks that the
Commission extend the annual filing date for this report until October 1 of each year.
ORDER NO. 28804 3
STAFF RECOMMENDATION
Staff contended that unbundled cost reports continue to have value because there is still
substantial interest in retail choice on the federal level. Furthermore, Staff stated that unbundled
cost information provides insight into cost differences that exist among utilities. Accordingly, Staff
recommended that the Commission continue to require the Companies to file these reports.
However, recognizing that costs change relatively slowly, Staff recommended that the Commission
require the Companies to file their reports every other year instead of yearly as is currently required,
with the first filing due July 1, 2002.
Staff also recommended making two modifications to the report form. First, Staff
recommended that unbundled cost information should be reported by customer class as identified in
each utility’s cost of service study rather than by delivery voltage level. Second, it should be
reported at actual earned rate of return and not adjusted to authorized return levels. In addition, Staff
also recommended that the actual earned rate of return for each customer class should be reported.
Staff contended that these changes will allow for better comparisons between unbundled cost
information and customer rates, and also will standardize rate of return assumptions for reporting
purposes.
REPLY COMMENTS
Avista Corporation
Avista states that historically the Commission has treated consistently jurisdictional
utilities with regard to the filing of unbundled cost reports. Specifically, whatever was required of
one Company was also required of the others. Avista expressed its support for the arguments made
by Idaho Power and PacifiCorp for discontinuing the filing of this report. Additionally, Avista
stated that the requirement to update these reports annually is “somewhat administratively
burdensome with no clear benefit evident from the exercise.” Avista Comments at p. 2.
Accordingly, Avista requests that it be allowed to discontinue the filing of this report.
Idaho Power Company
Idaho Power states that the legislation requiring the filing of this report has expired and
deregulation is a dead issue in this state. Accordingly, until the Legislature chooses to re-enact this
provision, the Company contends that the filing of this report at best will only obtain incomplete
ORDER NO. 28804 4
data. Accordingly, Idaho Power requests that the Commission allow it to discontinue the filing of
this report.
If the Commission continues to require the filing of this report Idaho Power contends that
it should remain confidential and not be released to third parties as dissemination of this information
could be detrimental to both Idaho Power and its retail customers. Idaho Power also suggests that if
the report must be filed that it be filed every five years or alternatively, only when the Commission
requests it as costs change relatively slowly. Finally, Idaho Power does not believe that Staff’s
recommended modifications to the report will improve its usefulness.
COMMISSION FINDINGS
After reviewing these Applications, the written comments, and the purposes for which
cost reports are filed the Commission finds that the companies shall continue to be required to file
these reports with the Commission. The Commission finds that these reports contain valuable
information and provide insight into the costs that each of the Companies incurs and the differences
that exist among them.
Turning to Idaho Power’s request that the filing of this report remain confidential, the
Commission finds that its existing Rules of Procedure provide appropriate procedures for protection
for trade secret information that may be contained in the materials submitted to the Commission.
See IDAPA 31.01.01.067.03.
Because these costs have historically changed relatively slowly, the Commission finds
that the companies’ cost reports shall be filed every other year, rather than annually, with the next
filing to occur on or before July 1, 2002.
The Commission finds that the companies shall not be required to modify the report form
to report unbundled cost information by customer class instead of by voltage level. However, the
Commission does find that the companies shall report unbundled cost information at the actual
earned rate of return and not adjusted to authorized return levels. The Commission also finds that
the actual earned rate of return for each customer class shall be reported.
O R D E R
IT IS HEREBY ORDERED that the Applications filed by Idaho Power, Avista and
PacifiCorp requesting that the Commission order the discontinuance of the filing of the unbundled
cost information report are denied.
ORDER NO. 28804 5
IT IS FURTHER ORDERED that the Commission shall require Idaho Power, Avista and
PacifiCorp to continue to file this report with it on an every other year basis, with the first report to
be filed on or before July 1, 2002.
IT IS FURTHER ORDERED that the companies' cost reports, when filed, shall contain
the actual earned rate of return not adjusted to authorized return levels and the actual earned rate of
return for each customer class.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of August 2001.
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Jean D. Jewell
Commission Secretary
O:ipce0118_avue019_pace019_jh2
Office of the Secretary
Service Date
August 21, 2001
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY TO DISCONTINUE
COST INFORMATION FILING AND
SUSPENSION OF FILING DATE PENDING
COMMISSION DETERMINATION.
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CASE NO. IPC-E-01-18
IN THE MATTER OF THE APPLICATION OF
AVISTA CORPORATION DBA AVISTA
UTILITIES FOR EXTENSION OF FILING
DATEFOR COST INFORMATION REPORT.
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CASE NO. AVU-E-01-9
IN THE MATTER OF THE APPLICATION OF
PACIFICORP TO DISCONTINUE COST
INFORMATION FILING AND SUSPENSION OF
FILING DATE PENDING COMMISSION
DETERMINATION.
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CASE NO. PAC-E-01-9
ERRATA TO
JOINT ORDER NO. 28804
On August 15, 2001, the Idaho Public Utilities Commission issued Joint Order No.
28804, in the above referenced cases. The following language was mistakenly omitted from the
ordering paragraphs of that Order and shall be considered to be added to it through this Errata. The
language is as follows and shall act to make Joint Order No. 28804 a final order.
THIS IS A FINAL ORDER. Any person interested in this Order or in
interlocutory Orders previously issued in these Case Nos. IPC-E-01-18, AVU-E-
01-9 and PAC-E-01-9 may petition for reconsideration within twenty-one (21)
days of the service date of this Order with regard to any matter decided in this
Order or in interlocutory Orders previously issued in this Cases. Within seven
(7) days after any person has petitioned for reconsideration, any other person
may cross-petition for reconsideration. See Idaho Code § 61-626.
DATED at Boise, Idaho this day of August 2001.
Jean D. Jewell
Commission Secretary