20030130 Commencement of Amoritization.pdf

LARRY D. RIPLEY ISB #965
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorney for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise , Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ACCOUNTING ORDER AUTHORIZING
IDAHO POWER TO DEFER THE
EXTRAORDINARY COSTS ASSOCIATED
WITH INCREASED SECURITY MEASURES
IMPLEMENTED ON COMPANY PROPERTY
SINCE SEPTEMBER 11 2001.
CASE NO. IPC-01-
NOTIFICATION OF
COMMENCEMENT OF
AMORTIZATION
On March 28, 2002, the Commission issued Order No. 28975 in the
above-entitled proceeding granting Idaho Power Company s request for an order
allowing for the deferral of extraordinary costs associated with increased security
measures. The Commission in that Order required that the extraordinary security costs
accrued before January 1 , 2002 be amortized over a five-year period commencing
January 1 , 2003. Costs deferred in each succeeding year would be amortized
beginning January 1 of the next calendar year. At Page 5 of Commission Order No.
28975 the Company has interpreted the Commission s Order to require the
NOTIFICATION OF COMMENCEMENT OF AMORTIZATION, Page
commencement of the amortization of 2002 deferred costs to be January 1 , 2003. The
Company herewith provides notification of the commencement of the monthly
amortization of security costs as follows:
2001 2002 Total
Monthly Amortization $932.$13 924.$14 857.
The Company recognizes that the final amortization amount is dependent upon the
Commission s prudency review of the expenses incurred as well as the ultimate sharing
of costs between Idaho Power Company shareholders and ratepayers.
Attached to this Notification is a brief description of the security measures
that were undertaken by the Company in 2001 and 2002. Due to the sensitivity of the
security measures , the descriptions of the measures are general in nature , and if the
Commission or its Staff desires additional information , the Company will make available
the Company s Security Consultant.
The Company has also attached a one-page document which sets forth
the Incremental Security Cost, Allocations and Amortizations for the years 2001 and
2002. The Company requests that if additional information is required in reference to
the cost allocations and amortization, that the Commission or its Staff contact Mr.
Michael J. Youngblood, Regulatory Affairs Representative , at 388-2882.
Communications with reference to this Notification should be sent to the
following:
NOTIFICATION OF COMMENCEMENT OF AMORTIZATION , Page 2
Larry D. Ripley
Senior Attorney
Idaho Power Company
O. Box 70
Boise, ID 83707
Michael J. Youngblood
Regulatory Affairs Representative
Idaho Power Company
O. Box 70
Boise, I D 83707
Respectfully submitted this 30th day of January, 2003.
Attorney for Idaho Power Company
NOTIFICATION OF COMMENCEMENT OF AMORTIZATION, Page 3
Additional Security Measures
Taken In 2001 and 2002
Additional Security Measures Taken In 2001
During the month of October 2001 , the administration of Idaho Power Company, in response to the acts
of terror committed against the United States of America on September 11 , 2001 , implemented a plan to
increase the physical security of several critical locations across the Idaho Power property and as an
integral part of that plan, retained the services of a security consultant. Due to the gravity of the existing
situation , interim measures were implemented pending a more thorough review of the potential threat to
the Company property.
The security consultant initiated contact with the Idaho State Police , United States Attorney s Office
Federal Bureau of Investigation , Bureau of Alcohol , Tobacco and Firearms and Idaho Bureau of Disaster
Services to seek input regarding the security effort and potential threat against the Company.
Hell's Canyon Complex
A security consultant was retained and four (4) locations in the Hell's Canyon Complex were identified as
security critical " The Company entered into an agreement with a private security contractor to provide 24
hour per day / 7 day per week security at those locations. The critical checkpoints were staffed and fully
operational in late October 2001. Additionally, Idaho Power Company agreed to reimburse the Adams
County Sheriff's Department for their summer, marine deputy s wages, vehicle expenses and housing, to
remain in the canyon and provide higher profile law enforcement response to security related issues.
Corporate Headquarters
Prior to the events of September 11 , 2001 , physical security at the Corporate Headquarters (CHO)
consisted of one (1) guard on-duty, 24-hours per day / 7 -day per week. Subsequent to that date, the
staffing was doubled, access to the facility restricted and physical barricades placed to restrict vehicular
access to the underground delivery area and adjacent, private alleyway. The barricades had to be moved
periodically via the use of a mechanical lifting devise at any time that access to the underground delivery
area was needed by contractors and / or vendors for large deliveries of equipment and supplies.
Boise Bench Facilitv
This facility located on East Amity Road in Boise , 10, was deemed critical due to the sensitive nature of
the business conducted there , the number of employees and the close proximity to a major substation in
the Idaho Power System. The contractor that supplies guards at the CHO currently supplies one (1)
guard on-duty, 24-hour per day / 7 -day per week.
Page 1 of 1
Additional Security Measures Taken In 2002
At the beginning of the year 2002, security guards were in place at four locations in the Hell's Canyon Complex,
security guard staffing at the Corporate Headquarters was doubled from pre September 11 , 2001 levels and a
security guard was in place at the Boise Bench. During calendar year 2002, Idaho Power Company has
reevaluated the threat potential throughout the Company Property, installed various electronic surveillance
devices and reduced the number of contract guards that were previously employed.
Hell's Canyon Complex
In late Fall of 2001 , a security consultant was hired and four (4) locations in the Hell's Canyon Complex were
identified as "security critical " The Company entered into an agreement with a private security contractor to
provide 24 hour per dayl7 day per week security at those locations. The critical checkpoints were staffed and
fully operational in late October 2001 .
In early 2002 and within a relatively short period of time after they were established, one of the interim security
checkpoints was identified as non-critical and discontinued, leaving three (3) checkpoints with full-time staffing.
During the month of March 2002 , threat potential in the Hell's Canyon Complex facilities was re-assessed and it
was determined that the Hell's Canyon Dam had the highest threat potential. The other two facilities, Brownlee
and Oxbow were determined to be relatively secure based on measures that had been implemented to restrict
vehicular access. At that time , the two (2) security posts , one at Brownlee Bridge and the other at Brownlee
Intake, were discontinued, leaving only the Hell's Canyon Dam checkpoint staffed and operational.
Electronic surveillance equipment is currently installed throughout the Hell's Canyon Complex and effective
August 3, 2002 the remaining checkpoint and security guard was eliminated.
Since the inception of the security guard program in Hell's Canyon Complex, the Security Consultant and
Director of Safety and Security have worked to identify and eliminate non-critical , staffed checkpoints and
reduce costs wherever and whenever possible while still maintaining a reasonable level of security for the
facilities, Idaho Power Company employees and visitors in the Complex.
Additionally, Idaho Power Company entered into an agreement with the Adams County Sheriff's Department
wherein Idaho Power Company will reimburse the Sheriff's Department for the costs of afull-time deputy,
vehicle and housing in Hell's Canyon. The deputy s primary responsibility is that of providing immediate
response to security related issues and providing a high profile law enforcement deterrent in the Hell's Canyon
Complex.
Corporate Headquarters
Prior to the events of September 11 , 2001 , physical security at the Corporate Headquarters (CHQ) consisted of
one (1) guard on-duty 24-hours per day /7 -day per week. Subsequent to that date, the staffing was doubled
access to the facility restricted and physical barricades placed to restrict vehicular access to the underground
delivery area and adjacent, private alleyway. The physical barricades needed to be moved periodically via the
use of a mechanical lifting devise. Access to the underground delivery area was restricted to and only allowed
when absolutely necessary. In the late summer of 2002, the threat potential was re-evaluated, the barricades
were removed and the security guard staffing was reduced to the pre-September 11, 2002 level.
Boise Bench Facilitv:
This facility located on East Amity Road in Boise, 10, was deemed critical due to the sensitive nature of the
business conducted there, the number of employees and the close proximity to a major substation in the Idaho
Power System. The Security guard staffing has been established at one (1) guard on-duty 24-hour per day / 7-
day per week.
Page 1 of 1
Incremental Security Cost , Allocations
and Amortizations
For the Years 2001 and 2002
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