20040719Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:LISA NORDSTROM
DATE:JULY 7, 2004
RE:IDAHO POWER MOTION TO DISMISS IDACORP ENERGY CODE OF
CONDUCT CASE FOR MOOTNESS. CASE NO. IPC-01-
On June 16, 2004, Idaho Power Company (Idaho Power, Company) filed a "Motion
to Dismiss for Mootness" in Case No. IPC-01-, a docket that sought to develop a code of
conduct for Idaho Power s marketing affiliate, IDACORP Energy (IE).
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." 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.
DECISION MEMORANDUM
28649, the Commission bifurcated the Company s Application into two separate proceedings. In
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 requests the Commission dismiss this case
with prejudice on the grounds that it has become moot. Idaho Power believes this Motion should
be processed on Modified Procedure.
RESPONSE (or Lack Thereof)
No party timely objected to Idaho Power s Motion to Dismiss. Staff reviewed the
Company s Motion prior to its filing and had no objection to closing this case. Case No. IPC-
01-8 remains open and can appropriately address any affiliate transaction issues that remain.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to grant Idaho Power s Motion to Dismiss Case No. IPC-
01-2 for Mootness?
M:IPCEOIO2Jn
DECISION MEMORANDUM
t.A::J
Lisa Nordstrom