20030606Notice of Expanded Scope Order No 29259.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
June 6, 2003
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-Ol-
NOTICE OF EXPANDED
SCOPE
NOTICE OF SETTLEMENT
WORKSHOP
NOTICE OF DEADLINE
TO INTERVENE
ORDER NO. 29259
On May 14, 2001 , the Commission issued Order No. 28731 , which divided the
disputed issues in Idaho Power Company s 2000-2001 Power Cost Adjustment (PCA) case into
two separate dockets. The first set of issues regarding the prudency of Idaho Power
transactions from April 2000 through February 2001 was resolved by Order No. 28852 in Case
Nos. IPC-01-7 and -11. A second docket concerning a variety of interim and prospective
issues relating to trading practices, affiliate transaction pricing and short-term resource planning
was assigned Case No. IPC-01-16.
In this Notice, the Commission expands the scope of the further proceedings and
settlement discussions in this case to include four similar issues from Case No. IPC-03-5 and
establishes a June 20, 2003 intervention deadline for interested parties that have not participated
in this case thus far. The Commission also notifies participants that the next workshop and
settlement negotiations will take place on June 23, 2003 at the offices ofldaho Power Company.
BACKGROUND
The second docket of issues assigned to Case No. IPC-01-16 specifically concerned
interim and prospective issues relating to: Idaho Power s trading practices (including hedging,
transmission and wheeling charges, Mid-C or Palo Verde pricing indexes, and use of weighted
average pricing for real-time purchases); the pricing, hedging and transmission terms of the
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259
IDACORP Energy (IE) Agreement and Order No. 28596; and the flexibility of the Company
short-term resource planning. Order No. 28831.
On June 21 , 2002, IDACORP announced that it was exiting the energy trading
business. As of August 1 , 2002, IE no longer provided most of the services envisioned by the
Supply and Management Agreement. As a result, the scope of the resolution of the issues in this
case will likely be limited to historic transactions rather than any ongoing relationship between
Idaho Power and IE.
Since May 2001 , the interested parties have participated in several workshops and
settlement negotiations regarding the issues in Case No. IPC-01-16. The parties reached a
settlement agreement regarding the Company s risk management and hedging practices, which
the Commission adopted in August 2002. Order No. 29102.
During the process of winding up IE's energy trading business, Idaho Power
determined that several wholesale transactions between Idaho Power and IE had been executed
without the requisite review and approval of the Federal Energy Regulatory Commission
(FERC). Determining the proper pricing and allocation of costs relating to transactions between
IE and Idaho Power, FERC approved by final order on May 16, 2003 the purchase prices for
ancillary services sold to IE and for real-time energy purchases between Idaho Power and IE.
Prior to this date, settlement negotiations between the parties in the instant case were temporarily
halted to avoid a duplication of effort.
Now that FERC's investigation is complete and its Order issued, interested parties
will resume settlement discussions with the hope of entering into a written stipulation that
resolves the issues pending in this case. Any settlement should encompass the following interim
and prospective issues: Idaho Power s trading practices (including transmission and wheeling
charges, Mid-C or Palo Verde pricing indexes, and pricing for real-time purchases); the pricing
and transmission terms of the IDACORP Energy (IE) Agreement and Order No. 28596; and the
four issues from Case No. IPC-03-5 discussed in the Notice of Expanded Scope section below.
Although settlement discussions may also address the Company s codes of conduct that are still
1 The Stipulation and Order in FERC Docket No. INO3-000 can be found online at
www.ferc.gov/home/IN03-000final settlement.pdf and www.ferc.gov/home/IN03-
OOORevised.pdf respectively.
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259
pending in Case Nos. IPC-01-2 and -, any resolution involving code of conduct issues should
be filed separately in their respective case numbers.
NOTICE OF EXPANDED SCOPE
YOU ARE HEREBY NOTIFIED that at the May 30, 2003 prehearing conference in
Case No. IPC-03-, the parties (to wit: Idaho Power Company, Commission Staff, the Idaho
Irrigation Pumpers Association, and the Industrial Customers of Idaho Power) discussed how to
proceed on six contested issues. Although the Commission had intended to immediately set a
date for an evidentiary hearing at the prehearing conference, the parties proposed an alternative
with the hope that an evidentiary hearing could be avoided.
YOU ARE FURTHER NOTIFIED that at the parties' request, the Commission
agreed to move four of the six disputed issues identified in Order No. 29243 to this docket, Case
No. IPC-01-16. Order No. 29258. These four issues are: 1) pricing of real-time transactions
between Idaho Power and IE; 2) recovery of IE- Tri State Transmission costs; 3) Company
sharing of the anticipated FERC settlement; and 4) continuance of payment for IE management
contract benefits. Because real-time affiliate pricing, transmission costs, and resolution of
outstanding IE matters are already part of the settlement discussions pending in Case No. IPC-
01-, the parties felt it would be more efficient to consolidate these issues under this case
number.
NOTICE OF SETTLEMENT WORKSHOP
YOU ARE FURTHER NOTIFIED that the next workshop in this case is scheduled
for MONDAY. JUNE 23. 2003 AT 9 A.M. This all-day meetin2: will take place at the offices
of Idaho Power Company. located at 1221 West Idaho Street. Boise.
YOU ARE FURTHER NOTIFIED that convening a settlement workshop allows the
parties to explore the possibility of settling issues in a reasonable, speedy and economical
manner. IDAP A 31.01.01.273. In attempting to settle these matters, the Commission urges the
parties to move expeditiously so that a resolution can be achieved in a timely manner.
YOU ARE FURTHER NOTIFIED that to facilitate a more efficient meeting,
settlement workshop participants should be prepared to identify specific issues for resolution at
the settlement workshop and discuss how these issues should be addressed. All parties should be
prepared to state their position at the settlement workshop and make settlement offers.
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259
YOU ARE FURTHER NOTIFIED that to promote the unencumbered exchange of
information and positions, the settlement workshop and negotiations are confidential.All
discussions during the settlement workshop or settlement documents prepared by the parties shall
be confidential. Written and oral statements made by or submitted by an attorney or any party at
the settlement workshop shall not be admissible for any purpose before the Commission and
shall not be subject to discovery. See Rule 272, IDAP A 31.01.01.272; I.A.R. 49(f).
YOU ARE FURTHER NOTIFIED that although the parties are encouraged to attend
the settlement workshop in person, parties unable to do so may participate by telephone
conference. Those parties planning to participate in the settlement workshop should R.S.v.
and/or notify Idaho Power Company of the need for teleconference arrangements by contacting
Ms. Betsey Gaultney at [phone] at least 48 hours before the workshop so that adequate
arrangements can be made.
YOU ARE FURTHER NOTIFIED that the parties attending the settlement workshop
in person or via teleconference shall have the immediate authority to approve or enter into a
settlement.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by any
settlement reached by the parties. Pursuant to Rule 276, the Commission will independently
review any settlement proposed to determine whether the settlement is just, fair and reasonable
and in the public interest, or otherwise in accordance with law or regulatory policy. If the
settlement is presented to the Commission, it may accept the settlement, reject the settlement, or
state additional conditions under which the settlement will be accepted. IDAP A 31.01.01.276.
YOU ARE FURTHER NOTIFIED that at the conclusion of the settlement
workshop(s), the parties will advise the Commission of the success or failure of settlement
negotiations. If a settlement is reached between two or more parties, the Commission will
determine how the settlement is to be reviewed. IDAPA 31.01.01.274.
YOU ARE FURTHER NOTIFIED that all further proceedings in this matter will be
held in facilities meeting the accessibility requirements of the Americans with Disabilities Act.
In order to participate, understand testimony and argument at a public hearing, persons needing
the help of a sign language interpreter or other assistance may ask the Commission to provide a
sign language interpreter or other assistance as required under the Americans with Disabilities
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259
Act. The request for assistance must be received at least five (5) working days before the
hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
[phone] (TELEPHONE)
[phone] (FAX)
E-mail: secretary~puc.state.id.
NOTICE OF DEADLINE TO INTERVENE
YOU ARE HEREBY NOTIFIED that persons desiring to intervene in this matter
for the purpose of negotiating a settlement, presenting evidence or cross-examining witnesses at
hearing (if one is necessary) must file a Petition to Intervene with the Commission pursuant to
the Commission s Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -073. Persons
intending to participate at the settlement workshop or hearing must file a Petition to Intervene
ON OR BEFORE JUNE 20, 2003 unless exempted below.
YOU ARE FURTHER NOTIFIED that the Commission has determined that Idaho
Power Company, Commission Staff, the Idaho Irrigation Pumpers Association, the Industrial
Customers of Idaho Power, AARP, Micron Technology, J.R. Simp lot Company and the Idaho
Retailers Association shall be considered parties to this case given their participation thus far in
Case Nos. IPC-01-, IPC-Ol-, IPC-01-16 and/or IPC-03-5. These parties do not need
to file a Petition seeking intervenor status.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61. The
Commission has jurisdiction over this matter under Idaho Code ~~ 61-622, 61-623, and 61-624.
YOU ARE FURTHER NOTIFIED that all further proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the issues subject to further proceedings and
possible settlement in Case No. IPC-01-16 are expanded to include: 1) pricing of real-time
transactions between Idaho Power and IE; 2) recovery of IE- Tri State Transmission costs; 3)
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259
Company sharing of the anticipated FERC settlement; and 4) continuance of payment for IE
management contract benefits.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for
purposes of participating in settlement discussion or an evidentiary hearing, if one is necessary,
must file a Petition to Intervene no later than June 20, 2003. Idaho Power Company,
Commission Staff, the Idaho Irrigation Pumpers Association, the Industrial Customers of Idaho
Power, AARP, Micron Technology, lR. Simplot Company and the Idaho Retailers Association
shall be considered parties to this case given their participation thus far in Case Nos. IPC-01- 7
IPC-Ol-, IPC-01-16 and/or IPC-03-5 and need not file a Petition seeking intervenor
status.
IT IS FURTHER ORDERED that a settlement workshop on all the issues pending
in Case No. IPC-01-16 shall take place on June 23, 2003 at 9 a.m. at the office of Idaho
Power Company, located at 1221 W. Idaho Street, Boise. Parties planning to participate should
P. and/or notify Idaho Power Company of the need for teleconference arrangements by
contacting Ms. Betsey Gaultney ofldaho Power at [phone].
THIS IS AN INTERLOCUTORY ORDER. Any person interested in this Order may
file a petition for review within twenty-one (21) days of the service date of this Order with
regard to any matter decided in this Order.petition to review may request that the
Commission: (1) rescind, clarify, alter, amend; (2) stay; or (3) finalize this Interlocutory Order.
After any person has petitioned for review, any other person may file a cross-petition within
seven (7) days. See Rules 321 322 323.324 325 (IDAPA 31.01.01.321-325).
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this (,
day of June 2003.
~lL
SHA H. SMITH, COMMISSIONER
ATTEST:
Je D. JewellCo ission Secretary
O:IPCEO1l6 ln2
NOTICE OF EXPANDED SCOPE
NOTICE OF SETTLEMENT WORKSHOP
NOTICE OF DEADLINE TO INTERVENE
ORDER NO. 29259