20030605Notice of Settlement Conference.pdf

Office of the Secretary
Service Date
June 5, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR AUTHORITYTO IMPLEMENT A POWER COST
ADJUSTMENT (PCA) RATE FOR ELECTRIC
SERVICE FROM MAY 16, 2003 THROUGH
MAY 15, 2004.
) CASE NO. IPC-03-
) NOTICE OF SETTLEMENT
) CONFERENCE
On April 15, 2003, Idaho Power Company filed an Application to decrease its electric
rates under the annual Power Cost Adjustment (PCA) mechanism first approved by the
Commission in 1993. In Order No. 29243 , the Commission approved the rates proposed in the
Company s Application (with one adjustment) effective May 16, 2003 , subject to refund and
interest. In addition, the Commission set a prehearing conference to schedule six disputed issues
valued at approximately $5.1 million for evidentiary hearing.
At the prehearing conference on May 30, 2003 , 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 the 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.
At the parties' request, the Commission agreed to move four of the six disputed issues
identified in Order No. 29243 to 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 ofIE-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 that case number. These four issues will next be discussed in a
settlement workshop at 9 a.m. on June 23, 2003 at the offices of Idaho Power Company in
Case No. IPC-01-16.
NOTICE OF SETTLEMENT CONFERENCE
As for the remaining two issues in Case No. IPC-03-5 (i., the proper amount of
normalized energy to calculate true-up and class deferral rates), the parties indicated at the
prehearing conference that it may be possible to settle them by agreement in lieu of an
evidentiary hearing. Idaho Power agreed to submit a settlement proposal to the parties no later
than June 6, 2003. Given that the facts of this case do not appear to be in dispute, we believe it
may be beneficial for the parties to be afforded one last attempt to settle these remaining issues.
Consequently, the Commission shall schedule a settlement conference to allow the parties an
opportunity to resolve Case No.IPC-03-
NOTICE OF SETTLEMENT CONFERENCE
YOU ARE HEREBY NOTIFIED that convening a settlement conference allows the
parties to explore the possibility of settling issues in a reasonable, speedy and economical
manner. IDAPA 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 a settlement conference will occur at 9:30
M. ON FRIDAY. JUNE 13.2003. AT THE COMMISSION'S OFFICES LOCATED AT
472 WEST WASHINGTON STREET. BOISE. IDAHO. Those parties wishing to participate
in the teleconference are advised to contact the Staff s counsel at least 24 hours before the
conference so that adequate telecommunication arrangements can be made.
YOU ARE FURTHER NOTIFIED that to promote the unencumbered exchange of
information and positions, the settlement conference and negotiations are confidential. All
discussions during the settlement conference 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 conference 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.AR. 49(f).
YOU ARE FURTHER NOTIFIED that the parties are encouraged to attend the
settlement conference in person.However, those parties unable to attend in person may
participate via telephone conference. All parties shall be prepared to state their position at the
settlement conference and shall be prepared to make settlement offers.
YOU ARE FURTHER NOTIFIED that the parties attending the settlement
conference in person or via teleconference shall have the immediate authority to approve or enter
into a settlement.
NOTICE OF SETTLEMENT CONFERENCE 2
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
conference, 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. IDAP A 31.01.01.274.
DATED at Boise, Idaho this J./fI'- day of June 2003.
Co ISSlOn Secretary
N:IPE0305 In
NOTICE OF SETTLEMENT CONFERENCE 3