20040729Final Order No 29549.pdf

Office of the Secretary
Service Date
July 29, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL OF)
A PROPOSED STATEMENT OF POLICY AND
CODE OF CONDUCT COVERING
TRANSACTIONS BETWEEN IDAHO POWER
COMP ANY AND IDACORP ENERGY
SOLUTIONS LP, AN AFFILIATED COMPANY.
CASE NO. IPC-Ol-
ORDER NO. 29549
On June 16, 2004, Idaho Power Company (Idaho Power, Company) filed a "Motion
to Dismiss for Mootness" in Case No. IPC-01-, a case that sought to develop a code of
conduct for Idaho Power s marketing affiliate, IDACORP Energy (IE). No party filed a timely
objection. In this Order, the Commission grants Idaho Power s request to dismiss this case for
mootness as set out in greater detail below.
BACKGROUND
In Commission Order No. 28596 issued in Case No. IPC-00-, the Commission
authorized Idaho Power to enter into an Agreement for Electricity Supply and Management
Services ("Agreement") with its affiliate IDACORP Energy Solutions LLP ("IES"). IES
subsequently changed its name to "IDACORP Energy
" ("
IE"). Idaho Power is, and IES and IE
were, wholly-owned subsidiaries of IDACORP, Inc. The activities of IES and IE were not
regulated by the Commission except for transactions with Idaho Power.
In Order No. 28596, the Commission stated that the Statement of Policy and Code of
Conduct submitted with the Company s Application required further development and the
opportunity for public input. In Order No. 28596, the Commission directed Idaho Power to
make a formal filing within 30 days of a proposed policy and code of conduct for affiliate
relationships. In the interim, the Commission found it reasonable that the Company and IE
conduct relationships between themselves in accordance with the Statement of Policy and Code
of Conduct outlined in the Company s Application.
On January 18 2001 , Idaho Power made the compliance filing discussed in Order No.
28596 and requested that the Commission approve a proposed Statement of Policy and Code of
Conduct covering transactions between Idaho Power and IE. On March 5 , 2001 , in Order No.
ORDER NO. 29549
28649, the Commission bifurcated the Company s Application into two separate proceedings. In
this case, Case No. IPC-01-, the Commission would consider the Statement of Policy and
Code of Conduct between Idaho Power and IE. Under Case No. IPC-01-, the Commission
would consider the Code of Conduct that would be applicable to other IDACORP subsidiaries
and Idaho Power affiliates. Subsequently, the Commission approved petitions to intervene in
this case filed by Astaris, LLC Power Development Associates LLC and the Industrial
Customers of Idaho Power.
In the summer of 2002, IDACORP decided to withdraw from the wholesale power
marketing business and began winding up IE's power marketing business. As of the date of this
Motion, IDACORP has sold IE's assets, discharged IE's employees and IE has ceased to operate
as a goIng concern. IE's remaining activities consist primarily of defending several pending
lawsuits.
IDAHO POWER'S MOTION TO DISMISS
As a result of the closing of IE and resolution of all issues arising out of or relating to
Idaho Power s business transactions with IE in the -16 Case, Idaho Power asserts there is no
need for the Commission to further consider a Statement of Policy or Code of Conduct to cover
transactions between Idaho Power and IE. There will be no future transactions between Idaho
Power and IE because the issues originally intended to be addressed in this proceeding are moot.
A case becomes moot when 'the issues presented are no longer live or the parties lack a legally
cognizable interest in the outcome.
'"
Idaho Sch. for Equal Educ. Opportunity v. Idaho State Bd.
of Educ.128 Idaho 276, 281 , 912 P.2d 644, 649 (1996) (quoting Bradshaw v. State 120 Idaho
429 432, 816 P.2d 989 (1991).
Based on the foregoing, Idaho Power requested the Commission dismiss this case
with prejudice on the grounds that it had become moot.
DISCUSSION AND FINDINGS OF FACT
In Commission Order No. 28596 issued in Case No. IPC-00-13 the Commission
authorized Idaho Power to enter into an Agreement for Electricity Supply and Management
services ("Agreement") with IES and stated that the Statement of Policy and Code of Conduct
submitted with the Company s Application, required further development and the opportunity for
public input. Order No. 28596 at 11 , Case No. IPC-00-13. This case was created specifically
to address the code of conduct between Idaho Power and lESe Order No. 28649. Because IE no
ORDER NO. 29549
longer operates and no party filed a timely objection to Idaho Power s Motion to Dismiss, we
find it reasonable to close out this case.
The Commission continues to find that a code of conduct governing transactions
between affiliates is necessary to: (1) direct corporate conduct and avoid issues of self-dealing,
and (2) provide a framework to determine if cost recovery for affiliate transactions sho~ld
prudently be included in rates. We also find that Case No. IPC-01-8 remains open to address
any affiliate transaction issues that remain with other Idaho Power affiliates. We encourage the
parties to work diligently to create a comprehensive code of conduct in that case and file it with
the Commission in the near future.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Motion to Dismiss Case
No. IPC-01-2 for mootness is granted.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. IPC-01-
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
Case No. IPC-01-2. For purposes of filing a petition for reconsideration, this order shall
become effective as of the service date. Idaho Code g 61-626. Within seven (7) days after any
person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code g 61-626.
ORDER NO. 29549
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;;Z
t+-
day of July 2004.
PAULKJ L
MARSHA H. SMITH, COMMISSIONER
Out of the Office on this Date
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Je III D. Jewell
Colfunission Secretary
O:IPCEO1O2 In
ORDER NO. 29549