20060324Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:MARCH 10,2006
SUBJECT:CASE NOS. IPC-06-, A VU-06-2, AND P AC-06-
PETITIONS TO RESCIND ORDER NO. 28804, FILING OF BIENNIAL
COST INFORMATION BUNDLING REPORTS
On February 28, 2006, Idaho Power Company ("Idaho Power ) filed a Petition to
rescind Order No. 28804, as it applies to Idaho Power, which requires Idaho Power to file
biennial cost information-unbundling reports with the Commission. On March 10 2006, Avista
Corporation dba Avista Utilities ("A vista ) filed a similar Petition, asking for the rescission of
Order No. 28804 as it applies to Avista. On March 10, 2006, PacifiCorp dba Utah Power &
Light Company ("PacifiCorp ) also filed a similar Petition, asking for the rescission of Order
No. 28804 as it applies to PacifiCorp.
THE PETITIONS
Order No. 28804 was issued by the Commission on August 15, 2001. Under this
Order, Idaho Power, A vista and PacifiCorp are obligated to file biennial cost reports that include
inter alia unbundled cost information at the actual earned rate of return and not adjusted to
authorized return levels, as well as the actual earned rate of return for each customer class.
In its Petition, Idaho Power states that it intends to regularly file general rate actions
with the Commission that would enable the Commission to routinely examine its costs. Idaho
Power believes that these more frequent rate case filings will allow the Commission and its Staff
the opportunity to review Idaho Power s costs in greater detail than afforded in the biennial cost
reports.
PacifiCorp similarly states in its Petition that it anticipates that regular rate case
actions will be needed in the future, and that such rate case filings will afford the Commission
DECISION MEMORANDUM
and its Staff to review PacifiCorp s costs. It further states that in addition to the review allowed
by rate case filings, the Commission and its Staff receive PacifiCorp s annual results of
operations. PacifiCorp will file these results for the 10 years following the Commission
ratification of the Revised Protocol, PacifiCorp inter-jurisdictional cost allocation
methodology.
Avista states that given the anticipated frequency with which it intends to file general
rate cases, it believes the Commission and its Staff will continue to have access to Avista s costs
through the cost of service studies that are part of the rate cases.
ST AFF RECOMMENDATION
Staff recommends that the Petitions of Idaho Power, A vista and PacifiCorp be
processed by Modified Procedure with a 21-day comment period. This should allow sufficient
time for interested parties to review the Petitions and file their comments with the Commission.
Reference Commission Rules of Procedure, IDAP A 31.01.01.201-.204.
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented in Case Nos. IPC-06-, A VU-06-2 and P AC-06-
, and that these cases are appropriate for Modified Procedure pursuant to Commission Rules of
Procedure 201 through 204?
Does the Commission approve of a comment period of 21 days?
Cecelia A. Gassner
M:IPC-O6-A VU-O6-PAC-O6-
DECISION MEMORANDUM