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Home My WebLink About20030314Supplemental Status Report.pdf' r r, t 'L I ~' L L~:.J '-- BARTON L. KLINE ISB #1526 Idaho Power Company O. Box 70 1221 West Idaho Street (83702) Boise , Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 Attorney for Idaho Power Company FiLED ZQQ3 t1A;~ 14 PicJ 5: 00 !nt"""":""~"c.. ,. UTILI! iES COi1t-IJlSSION LISA D. NORDSTROM ISB #5733 Deputy Attorney General Idaho Public Utilities Commission 472 West Washington Street (83702-5983) O. Box 83720 Boise, Idaho 83720-0074 Telephone: (208) 334-0314 FAX Telephone: (208) 334-3762 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S INTERIM AND PROSPECTIVE HEDGING , RESOURCE PLANNING , TRANSACTION PRICING AND IDACORP ENERGY SOLUTIONS (IES) AGREEMENT. ) CASE NO. IPC-01- (PHASE II) ) SUPPLEMENTAL STATUS REPORT On December 20 , 2002, in compliance with Order No. 29102 Idaho Power Company ("Idaho Power" or "the Company ) and the Commission Staff jointly filed a Status Report to advise the Commission of the current status of the Parties' efforts to resolve the remaining issues in this case specifically relating to transactions between Idaho Power and IDACORP Energy LP ("IE") under the Agreement For Electricity Supply and Management Services between Idaho Power and IE ("Supply and Management Agreement" SUPPLEMENTAL STATUS REPORT, Page In the December 20, 2002, Status Report, Idaho Power committed that on or before March 15, 2003 , it would file with the Commission either a proposed resolution of the outstanding issues or another Status Report addressing the remaining unresolved issues and a plan for resolving the issues. This Supplemental Status Report is filed to fulfill that commitment. Historv of the ProceedinQ The December 20 2002 Status Report provided a summary of the prior history of this case. This Supplemental Status Report will not repeat all of that history. However, one portion of the history of this case that needs to be updated is the resolution of Federal Energy Regulatory Commission ("FERC") issues. As noted in the December 20 2002 Status Report, during the process of winding up IE's energy trading business , it became apparent to Idaho Power that a number of wholesale transactions between Idaho Power and IE had been executed in a manner that was not consistent with the requirements of the FERC. In addition , it was determined that a number of wholesale power transactions between the Company and IE had not received the required prior approval from the FERC. While in most instances IE has already paid for the wholesale services provided, purchase prices under these transactions must be reviewed and approved by the FERC. To come into full compliance with the FERC requirements, Idaho Power and IE have been engaged in a substantial effort to review allocate , and price all transactions between the parties in a manner that is consistent with FERC requirements. Idaho Power has retained the services of Charles River Associates to assist in the separation of pricing process. SUPPLEMENTAL STATUS REPORT, Page 2 Plan For Resolution of -16 Case Issues As noted in the December 20 , 2002 , Status Report, to determine the proper pricing and allocation of costs relating to transactions between IE and Idaho Power, it will be necessary for the FERC to finally approve purchase prices for certain ancillary services sold to IE and to finally approve prices for real-time energy purchases between Idaho Power and IE. Idaho Power has presented these issues and a massive amount of data to the FERC and is currently awaiting a determination by the FERC. As of the date of this filing, the FERC has not made its final determinations on the allocation and quantification of costs associated with the Idaho Power--IE transactions. Idaho Power has been in continuing communication with the FERC Staff and believes that the FERC will provide additional guidance as to how it intends to proceed in the very near future. Idaho Power is confidant that this additional information will allow Idaho Power to proceed expeditiously with the plan for resolution of -16 case issues outlined in the December 20, 2002 , Status Report. As noted in the December 20, 2002 , Status Report, Idaho Power and Staff have agreed that it is preferable to allow the FERC to complete its review process before initiating additional settlement discussions among the participants in this case. Idaho Power and Staff still believe this is the correct process to follow, as it will avoid unneeded duplication of effort and allow for the most efficient allocation of resources by the parties. In summary, the plan for resolution anticipates that when the FERC has made its final determinations on the allocations and quantification of costs associated with the Idaho Power--IE transactions, Idaho Power and IE will enter into a settlement SUPPLEMENTAL STATUS REPORT, Page 3 agreement which would establish an amount of additional monies owing to Idaho Power. Idaho Power would then present that Idaho Power-IE settlement agreement and supporting documentation to the parties in this proceeding in a workshop or series of workshops in which the amount and derivation of additional revenue could be discussed. Following the workshops , it would be Idaho Power s and Staff's expectation that the parties would attempt to negotiate and enter into a written stipulation which will resolve and settle all of the remaining issues in this case. This stipulation would integrate the FERC-approved transfer prices and allocations in developing a final negotiated settlement. Staff and Idaho Power still believe that this basic procedure is the most reasonable and prudent way to move forward with the ultimate resolution of the issues in this case. On the assumption that the FERC is very close to providing Idaho Power with additional guidance , Idaho Power is willing to commit that on or before May 16 2003, Idaho Power will file with the Commission either (1) the stipulated resolution described above, or (2) a supplemental status report addressing the remaining unresolved issues and a plan for resolving those issues. Idaho Power reiterates its regret that this case has become so much more complicated than had been initially anticipated. The Company continues to be confident that the substantial effort already taken by Idaho Power, IE, and Charles River Associates will provide the participants in this case with a high level of confidence that all of the issues have been fully explored and that any additional compensation owing to Idaho Power is computed based on the best available data. SUPPLEMENTAL STATUS REPORT, Page 4 Respectfully submitted this 14th day of March , 2003. SUPPLEMENTAL STATUS REPORT, Page 5 ~dz~ BARTO~ L. KLINE Attorney for Idaho Power Company ---...J CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 14th day of March, 2003, I served a true and correct copy of the within and foregoing SUPPLEMENTAL STATUS REPORT upon the following named parties by the method indicated below, and addressed to the following: Lisa D. Nordstrom Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington Street O. Box 83720 Boise, Idaho 83720-0074 Randall C. Budge Racine, Olson, Nye , Budge & Bailey Center Plaza-Corner First & Center O. Box 1391 Pocatello, Idaho 83204-1391 Anthony Yankel 29814 Lake Road Bay Village , Ohio 44140 Peter J. Richardson Molly O'Leary Richardson & O'Leary 99 E. State Street, Suite 200 O. Box 1849 Eagle , Idaho 83616 Stuart Trippel Trippel Mast Consulting LLC 506 Second Avenue, Suite 1001 Seattle, Washington 98104-2328 --L Lawrence A. Gollomp S. Department of Energy, Room 6D-003 1000 Independence Avenue S. Washington , D.C. 20585 CERTIFICATE OF SERVICE, Page Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Dr. Dale Swan Exeter Associates 12510 Prosperity Drive, Suite 350 Silver Springs, Maryland 20904 Conley E. Ward Givens , Pursley LLP 277 North 6th Street, Suite 200 P. O. Box 2720 Boise , Idaho 83701-2720 Ken Tandy Astaris LLC P. O. Box4111 Highway 30, West of City Pocatello, Idaho 83202 CERTIFICATE OF SERVICE , Page 2 Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX --L Hand Delivered S. Mail Overnight Mail FAX ~cl~_ BARTON L. KLI N E