20051003Compliance filing.pdf

IDAHO
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An IDACORP Company
IDAHO POWER COMPANY
O. BOX 70
BOISE, IDAHO 83707
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LuUS OCT - 3 PN 2: 26
BETSY GAL TNEY
Regulatory Affairs Representative
Pricing & Regulatory Services
: hd F'UdL!C [phone]
JIILlllES COi'll';1ISSION FAX [phone]
MAIL paaltnev(Q)jdahopower.com
September 30, 2005
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074
RE:IPC-01-16 - Compliance Filing
Dear Ms. Jewell:
In Order No. 29102, issued in Case No. IPC-01-, the Commission directed Idaho Power
Company to submit a Risk Management and Policy Manual and the 2003-2004 Risk Guidelines as
approved by the Idaho Power Company Board of Directors Audit Committee to the Commission for
final review and approval. On December 4, 2002 , the Company submitted the Policy Manual and Risk
Guidelines to the Commission.
In Order No. 29102, the Commission also accepted a Stipulation which required the Company
to meet annually with Commission Staff and the Customer Advisory Group to develop revised Risk
Guidelines for each subsequent PCA year. The required annual collaborative meeting took place on
August 1 , 2005. During that meeting, the Company proposed no change to the Risk Guideline limits
for the 2006-2007 PCA year and the Commission Staff and CAG were in agreement with the proposal.
On September 14, 2005 the Risk Guidelines for the 2006-2007 PCA year were approved by the Audit
Committee of the Board of Directors.
The Company Energy Risk Management Policy requires that any modifications to the Policy
be filed with the Idaho Public Utilities Commission upon approval by the Audit Committee of the Board
of Directors of Idaho Power. Accordingly, attached to this Compliance Filing is an original and six
copies of the 2006-2007 Risk Guidelines as approved by the Audit Committee of the Board of
Directors.
Two extra copies of the Compliance Filing are enclosed for Randy Lobb and Terri Carlock.
Copies have also been sent to the Customer Advisory Group.
BG:ma
Enclosuresc: Randy Budge
David Hawk
Pam Eaton
Dale Eldridge
Don Reading
Peter Richardson
Lynn Tominaga
Ric Gale, IPCO (w/o attachment)
Bart Kline, IPCO (w/o attachment)
APPENDIX F:RISK GUIDELINES FOR THE 2005-2006 and
2006-2007 PCA YEAR
TIER ONE
System Risk Limit
Hedges Established
Hedges Removed
TIER TWO
Volumetric Limit
Hedges Established
Hedges Removed
TIER THREE
Hedges Established
Hedges Removed
$100 million
25 MW tranches
50 MW tranches
+/-
100 MW
25 MW tranches
50 MW tranches
25 MW tranches
50 MW tranches
The approved seasonal factors listed below will be applied to the
Floor Limit prices and rounded to the nearest dollar.
Floor Limits Heavy Load Light Load
Expected Forecast $30 $15
Low-Water Forecast $20 $10
The RMC may modify its hedging activities associated with each Tier constraint
in order to recognize more efficient market transactions (Le. buy for a quarter
instead of individual months or establish or remove hedges in the most efficient
increments).
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