HomeMy WebLinkAbout2000501_cc.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
DON HOWELL
STEPHANIE MILLER
TONYA CLARK
RON LAW
BILL EASTLAKE
RANDY LOBB
TERRI CARLOCK
MADONNA FAUNCE
KEITH HESSING
BEVERLY BARKER
WORKING FILE
FROM: CHERI C. COPSEY
DATE: MAY 1, 2000
RE: 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; CASE NO. IPC-E-00-4.
Pursuant to Order No. 26216 issued in Case No. IPC-E-95-11, Idaho Power Company filed its 1999 Earnings Compliance Report on March 28, 2000, reflecting an actual return on IDACORP, Inc. equity of 13.10% for the Idaho jurisdiction. The customer share of the 1999 earnings amounted to $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. Amounts also to be returned to customers include the unused balances with interest in the Agricultural Choice Program reserve of $240,392 and unused 1999 NEEA reserve of $162,751. Inclusion of these amounts results in a 1999 revenue sharing balance of $9,630,845 before Staff adjustments. Idaho Power also shows 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 has been computed through May 15, 2000.
In response to Order No. 28339, Notice of Application and Notice of Modified Procedure issued April 14, 2000, only Staff submitted comments on April 28, 2000.
STAFF COMMENTS AND RECOMMENDATION
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. The Utilities Division Staff also found that the calculation for the FMC shared revenues amount included a reduction for taxes. The portion of revenue to be shared will be a deduction for tax purposes so the tax should be removed. The correction of FMC shared revenues will increase these shared revenues by $131,362 to $333,769. The corrected 1999 customer sharing amount is $9,693,141.
The Utilities Division Staff also conducted a limited audit on the Agricultural Choices Program and NEEA reserves to check payments and interest calculations. Utilities Division Staff agrees with the reserve balances as presented by Idaho Power. 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 agrees 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.
In response to a Staff audit request, Idaho Power recalculated the shared revenues of $9,693,141 allocated to each customer class. The Utilities Division Staff reviewed the calculation and believes the revised class allocations are accurate. The recalculations are shown on Attachment 1.
Staff recommended the amount of $9,693,141 be accepted as the 1999 customer shares. Staff also recommended the customer class allocation shown in Attachment 1 be approved. Staff recommended the amount established in Order No. 28333 for NEEA participation be reserved for that purpose based on the customer class allocation shown in Attachment 1. Finally, Staff recommended that the remaining amount be returned as customer refunds to coincide with the PCA change with the requested effective date of May 15, 2000.
Commission Decision
Should the Commission approve Idaho Power Company’s 1999 earnings compliance filing as modified by Utilities Division Staff in Attachment 1?
Cheri C. Copsey
Technical Staff: Madonna Faunce
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DECISION MEMORANDUM 2