29081.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AN ACCOUNTING ORDER AUTHORIZING THE INCLUSION OF POWER SUPPLY EXPENSES ASSOCIATED WITH THE PURCHASE OF CAPACITY AND ENERGY FROM GARNET ENERGY, LLC IN THE COMPANY’S POWER COST ADJUSTMENT (PCA). )
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CASE NO. IPC-E-01-42

NOTICE OF VACATED HEARING

NOTICE OF ORAL ARGUMENT

ORDER NO. 29081
On December 14, 2001, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) in Case No. IPC-E-01-42. The Company requests a Commission Order approving as prudent its power purchase arrangements with Garnet Energy LLC, an unregulated affiliate of Idaho Power. The Company also seeks an accounting order authorizing Idaho Power to include the prudently incurred expenses associated with the purchase of capacity and energy from Garnet Energy LLC in the Company’s Power Cost Adjustment (PCA) mechanism.
Pursuant to Notice issued May 13, 2002, public hearing in Case No. IPC-E-01-42 was scheduled to commence Tuesday, July 23, 2002, continuing (if necessary) on July 24 and 26, 2002.
IDAHO POWER—MOTION FOR CONTINUANCE
On July 22, 2002, Idaho Power Company filed a Motion with the Commission requesting that the scheduled hearing be vacated and continued for an indefinite period but not less than 120 days. The Company requests expedited consideration of its Motion. Reference IDAPA 31.01.01.252 and 256. As principal reason for the requested continuance Idaho Power relates that late last week the Company was advised by Garnet Energy LLC and Garnet’s corporate parent IDACORP Inc. that in today’s financial markets, based on the current Power Purchase Agreement (PPA) between Idaho Power and Garnet there is a substantial likelihood that Garnet and IDACORP will be unable to obtain the financing necessary to construct the Garnet generating facility. Reference Affidavit of Darrell Anderson, IDACORP chief financial officer. IDACORP and Garnet are reportedly pursuing alternative financing arrangements that will require additional time. Idaho Power on or prior to October 21, 2002, will present to the Commission a written report that will either demonstrate (1) that the Garnet generating facility can be financed and constructed to allow Garnet to fully perform in accordance with the terms of the filed Power Purchase Agreement or (2) that it would be in the public interest for the Commission to issue its Order concluding this proceeding and authorizing Idaho Power to cancel the Power Purchase Agreement.
Idaho Power states that it has been advised by Garnet that if Commission approval of the Power Purchase Agreement can be obtained prior to March 1, 2003, the Garnet facility could still be constructed to meet the online date of June 1, 2005.
In accordance with the provisions of Commission Rule of Procedure 256.02(b), Idaho Power certifies that it has either provided actual notice of this Motion to at least one representative of all the parties to this proceeding, or has used its best efforts to contact representatives of all the parties.
CFRLU/IRC MOTION TO DISMISS
At the Commission’s public decision meeting on July 22, 2002, the Citizens for Responsible Land Use/Idaho Rural Council (CFRLU/IRC) in response to Idaho Power’s request for continuance, made an Oral Motion to Dismiss (without prejudice) the Company’s Application in Case No. IPC-E-01-42.
COMMISSION FINDINGS
The Commission has reviewed Idaho Power’s Motion for Continuance of Hearing in Case No. IPC-E-01-42 together with the attached affidavit of Darrel Anderson and considered same as a scheduled agenda item at our decision meeting on July 22, 2002. Finding that the Motion and the Affidavit submitted by Idaho Power constitute good cause, the Commission finds it reasonable, without further notice or delay, to vacate the hearing scheduled to begin in this case on Tuesday, July 23, 2002.
The Commission has considered CFRLU/IRC’s Motion to Dismiss and finds that the ramifications of such a motion need to be considered by the Commission and parties in a more deliberate manner. We are especially interested in the positions of the other parties to this case on the Motion to Dismiss and therefore find it reasonable to set this matter for oral argument. As all parties were available for the scheduled July 23, 24 (26) hearing dates, we find it reasonable to schedule the oral argument for Wednesday, July 24, 2002.
Accordingly, YOU ARE HEREBY NOTIFIED that Oral Argument on CFRLU/IRC’s Motion to Dismiss is scheduled for 10:00 A.M., WEDNESDAY, JULY 24, 2002 AT THE COMMISSION’S HEARING ROOM, 472 W. WASHINGTON STREET, BOISE, IDAHO.
O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby vacate the public hearing in Case No. IPCE0142 that was previously scheduled for July 23-24 and 26, 2002.
IT IS FURTHER ORDERED and the Commission does hereby adopt the above scheduling for Oral Argument on CFRLU/IRC’s Motion to Dismiss.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of July 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:IPCE0142_sw5
NOTICE OF VACATED HEARING
NOTICE OF ORAL ARGUMENT
ORDER NO. 29081 1

Office of the Secretary
Service Date
July 22, 2002