HomeMy WebLinkAbout20011116_dh.docDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
TONYA CLARK
TERRI CARLOCK
BEV BARKER
LYNN ANDERSON
DAVE SCHUNKE
RANDY LOBB
GENE FADNESS
WORKING FILE
FROM:
DATE:
NOVEMBER 16, 2001 RE: IDAHO POWER’S REQUEST FOR AN ACCOUNTING ORDER TO DEFER EXTRAORDINARY COSTS ASSOCIATED WITH INCREASED SECURITY MEASURES SINCE SEPTEMBER 11, 2001, CASE NO. IPC-E-01-41
On November 15, 2001, Idaho Power filed an Application requesting the Commission issue an accounting Order authorizing the Company to defer extraordinary costs associated with increased security measures since the terrorist attacks of September 11, 2001. The President’s Executive Order No. 13010 identified critical national infrastructure as including components of the electric power system.
In the Company’s Application, it states that it has increased security at its facilities and has retained a security consultant to advise the Company of additional security measures that may be warranted. Application at 2. For “obvious security reasons”, the Company does not desire to present more specific details of its increased security actions. The Company has stated that it would be willing to provide the Commission, in confidence, additional details of its extraordinary security measures.
PROPOSED ACCOUNTING ORDER
Idaho Power proposes that the Commission issue an accounting Order allowing the Company to defer in Account 182.3 (Regulatory Assets), with Interest, its “extraordinary security costs incurred since September 11, 2001. The Company reported its ordinary security costs for the nine (9) months prior to September were approximately $11,000 per month. Application at 3. The Company proposes that the extraordinary security account defer only those expenditures over and above the $11,000 per month basis.
The Company notes that these extraordinary security measures ensure the safety of its employees and protect the Company’s assets. This additional security benefits all Idaho Power’s customers. The Company requests that its Application be processed under Modified Procedure.
STAFF RECOMMENDATION AND ANALYSIS
Staff recommends approval of the accounting Order requested by the Company. Staff believes that protection of the Company’s critical infrastructure facility is warranted given the events on and after September 11, 2001. As is the Commission’s practice in other instances when a utility seeks approval to establish a deferred account, the reasonableness of expenditures included in the deferral account will be reviewed at such time as the Company seeks recovery of expenses recorded in the deferral account.
Staff also believes that it is appropriate to process this matter under Modified Procedure. The Company served a copy of its Application on INEEL, Simplot Company, Micron Technology, Astaris, ICIP’s counsel, and counsel for Monsanto and Idaho Water Users Association (Randy Budge).
COMMISSION DECISION
Does the Commission wish to process this Application under Modified Procedure?
vld/M:IPC-E-01-41_dh
DECISION MEMORANDUM 1