28357.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE 1999 COMPLIANCE FILING OF IDAHO POWER COMPANY AS REQUIRED BY ORDER NO. 26216 IN CASE NO. IPC-E-95-11. )
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CASE NO. IPC-E-00-4

ORDER NO. 28357

In Order No. 26126 issued October 1995 in Case No. IPC-E-95-11, the Commission approved a Settlement Stipulation resolving certain cost and accounting issues for Idaho Power Company. The Stipulation provided in relevant part that, for the years 1995 through 1999, if the Company’s “actual earnings for a preceding year exceed an 11.75% return on year end common equity, the Company shall refund 50% of the excess commencing on May 15th [sic] of each year, in conjunction with its PCA rate adjustment.” Order No. 26126 at p. 4.
On March 28, 2000, pursuant to Order No. 26216 issued in Case No. IPC-E-95-11, Idaho Power Company filed its 1999 Earnings Compliance Filing, reflecting an actual return on IDACORP, Inc. equity of 13.10% for the Idaho jurisdiction. To expedite the process, on April 14, 2000, the Commission ordered the filing be processed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201 through -.204. Order No. 28339. Comments were due on April 28, 2000. Id.
Only Staff filed comments. Staff recommended some changes to the calculation which results in a change in the total amount to be shared with Idaho Power customers.
Based on the comments, the law, Order No. 26216 and the record, the Commission approves Idaho Power's compliance filing as modified below.

COMMISSION FINDINGS
According to the compliance filing, Idaho Power calculated the customer share of the 1999 earnings to be $9,025,295 before previously authorized deductions. In addition, Idaho Power identified an undercharge for FMC Corporation of $699,284 in revenues with shared revenues of $202,407. Idaho Power also noted that the amounts to be returned to customers also included the unused balances (with interest) in the Agricultural Choice Program reserve of $240,392 and unused 1999 NEEA reserve of $162,751. Idaho Power indicated that inclusion of these amounts results in a 1999 revenue sharing balance of $9,630,845. Idaho Power also indicates that there is a 1998 customer revenue sharing balance attributable to customers, other than Schedule 19 and special contract customers, of $2,704,469. Interest on the reserved balances was computed through May 15, 2000.
The Utilities Division Staff conducted a limited audit to verify the actual earnings and identified an error in the adjusted common equity at year-end that will reduce the 1999 earnings amount by $69,066 to $8,956,229. Utilities Division Staff found that Idaho Power's calculation for the FMC shared revenues amount included a reduction for taxes. Utilities Division Staff advised that the portion of revenue to be shared will be a deduction for tax purposes and, therefore, Staff recommended the tax be removed from the calculation. The Commission agrees with Utilities Division Staff and adopts the correction of FMC shared revenues recommended by Staff. The Commission finds that as a result, shared revenues will be changed from $131,362 to $333,769 and the corrected 1999 customer sharing amount is $9,693,141.
After conducting a limited audit of the Agricultural Choices Program and NEEA reserves to check payments and interest calculations, Utilities Division Staff agreed with the reserve balances presented by Idaho Power for Agricultural Choices Program and NEEA reserves. The Commission finds that the Agricultural Choices Program and NEEA reserve balances reported by Idaho Power are appropriate. Utilities Division Staff also conducted a limited audit of the reserve provided in Order No. 28099 issued in Case No. IPC-E-99-2 and agreed that a proper payment was made to Schedule 19 and special contract customers and that interest on the deferred portion for other customers was properly recorded. The Commission so finds.
The Commission finds that the amount of $9,693,141 is the customer share.

O R D E R
IT IS HEREBY ORDERED that Idaho Power’s 1999 compliance filing as modified above is approved as shown in Attachment A, incorporated in and made part of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of May 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

O:ipce0004_cc2

ORDER NO. 28357 1

Office of the Secretary
Service Date
May 4, 2000