20011109Notice of Application - Modified Procedure - Order No 28893.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AN ORDER APPROVING THE COSTS TO BE INCLUDED IN THE 2002/2003 PCA YEAR FOR THE IRRIGATION LOAD REDUCTION PROGRAM AND ASTARIS LOAD REDUCTION AGREEMENT.
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NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

ORDER NO. 28893
On October 18, 2001, Idaho Power Company filed an Application for a Commission Order approving the costs from the Irrigation Load Reduction Program and Astaris Load Reduction Agreement to be included in its 2002/2003 Power Cost Adjustment (“PCA”).
On May 25, 2001, the Commission approved the Company’s Irrigation Load Reduction Program that authorized payments for irrigation customers that committed to reduce energy consumption by at least 100,000 kWh between March 1, 2001, and November 30, 2001. Order No. 28699, Case No. IPC-E-01-3. In this Order the Commission found that the direct costs and reduced revenue impacts of the Irrigation Load Reduction Program should be treated as a purchased power expense in the Company’s PCA mechanism. Id. at p. 12. The Commission also stated that, “Idaho Power and the parties shall develop and present a proposal to the Commission recommending a procedure to calculate the amount of revenue impact that should be passed through the Company’s PCA mechanism.” Id.
On September 27, 2001, the Company held a meeting with all interested parties at its corporate headquarters to discuss its proposed methodology for computing reduced revenue impacts. This proposal includes three components: the energy component addresses the revenue impact associated with the reduction in billed kWh as a result of the Irrigation Load Reduction Program; the demand component addresses the revenue impact associated with the reduction in billed kW as a result of the Program; and, the load reduction offset component reverses the load change adjustment to power supply expenses included in the PCA methodology. Idaho Power requests that the Commission approve the methodology for the calculation of reduced revenue as set forth in the testimony of Maggie Brilz which is attached to the Application.
The Company states that the Idaho portion of the Irrigation Load Reduction Program costs that should be included in the PCA computation through September 2001 is $58,592,015.96 including interest.
In Order No. 28695, in Case No. IPC-E-01-9, the Commission approved the inclusion of the Astaris Load Reduction Agreement payments in the Company’s PCA. The payments to Astaris through September 2001 that the Company states should be included in the PCA with interest total $42,212,092.34.
The Company states that as it books additional costs to the PCA for the above Programs it requests authorization to provide updated costs so that the Commission can issue an Order authorizing the total amount to be deferred to the 2002/2003 PCA for the year 2001. The Company states that it will file a second application requesting an Order approving the amounts deferred for the Irrigation Load Reduction Program and the Astaris Load Reduction Agreement to be included in the PCA that will not be included in the Commission’s Order issued in this proceeding.
Idaho Power requests that this Application be considered by written submission rather than by an evidentiary hearing and thus processed under Modified Procedure pursuant to Commission Rule of Procedure 201. However, should the Commission determine that a hearing should be held it stands ready to proceed.
Accordingly, Idaho Power requests that the Commission issue an Order approving the methodology for the calculation of the reduced revenue as a result of the Irrigation Load Reduction Program, and for an Order approving the costs to be included in the 2002/2003 PCA year for the above Programs in the amount of $100,804,108.30. The Company further requests authority to supplement its filing in this proceeding as additional costs are incurred in the year 2001 for these Programs.
YOU ARE HEREBY NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules of Procedure, IDAPA 31.01.01.201 through -204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this Application may file a written comment in support or opposition with the Commission within twenty-one (21) days from the date of this Notice. The comment must contain a statement of reasons supporting the comment. Persons desiring a hearing must specifically request a hearing in their written comments. Written comments concerning this application shall be mailed to the Commission and the Applicant at the addresses reflected below:

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, IDAHO 83720-5983 LARRY D. RIPLEY, SENIOR ATTORNEY
IDAHO POWER COMPANY
PO BOX 70
BOISE, ID 83707

MAGGIE BRILZ, DIRECTOR OF PRICING
IDAHO POWER COMPANY
PO BOX 70
BOISE, ID 83707

All comments should contain the case caption and case number shown on the first page of this document. Persons desiring to submit comments via e-mail may do so by accessing the Commission’s homepage located at www.puc.state.id.us under the heading of “Contact Us.” Once at the “Contact Us” page, select “Email Case Comments or Questions,” fill in the case number as it appears on the front of this document, and enter comments. These comments should also be sent to the Applicant at the addresses listed above. IDAPA 31.01.01.012 and .203.
YOU ARE FURTHER NOTIFIED that if no written comments are received within the time limit set, the Commission will consider this matter on its merits and enter its Order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing.
YOU ARE FURTHER NOTIFIED that the Application together with supporting workpapers, testimonies and exhibits, have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices.
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.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.

O R D E R
IT IS HEREBY ORDERED that the Application of Idaho Power Company for an Order approving the inclusion of costs from the Irrigation Load Reduction Program and Astaris Load Reduction Agreement in the 2002/2003 PCA year be processed by Modified Procedure, IDAPA 31.01.01.201-204. Persons interested in submitting written comments in this matter should do so no later than fourteen (21) days from the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of November 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

O:IPCE0134_jh

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28893 4

Office of the Secretary
Service Date
November 9, 2001