20030605Order No 29258.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 AUTHORITY
TO IMPLEMENT A POWER COST
ADJUSTMENT (PCA) RATE FOR ELECTRIC
SERVICE FROM MAY 16, 2003 THROUGH
MAY 15,2004.
CASE NO. IPC-03-
ORDER NO. 29258
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. These six issues include: 1)
pricing of real-time transactions between Idaho Power and IDACORP Energy (IE); 2) recovery
of IE- Tri State Transmission costs; 3) Company sharing of the anticipated FERC settlement; 4)
continuance of payment for IE management contract benefits; 5) the proper amount of
normalized energy to compute the true-up rate; and 6) the proper amount of normalized energy
to compute the rates to be paid on PCA amounts deferred from the prior PCA period. Order No.
29243 at 10.
PREHEARING CONFERENCE
At the prehearing conference on May 30, 2003 , the parties discussed how to proceed
on the contested issues identified above. The following parties entered appearances: Idaho
Power Company, Commission Staff, the Idaho Irrigation Pumpers Association, and the Industrial
Customers of Idaho Power. The Commission had granted the Company, Staff and the Idaho
Irrigation Pumpers Association party status in Order No. 29243. The Industrial Customers of
Idaho Power timely filed a Petition to Intervene on May 28, 2003. Idaho Power stated at the
prehearing conference that it did not object to the intervention of the Industrial Customers in this
proceeding.
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. The participants agreed that four of the six disputed issues
ORDER NO. 29258
identified in Order No. 29243 should be moved to Case No. IPC-01-16. These four issues are:
1) pricing of real-time transactions between Idaho Power and IE; 2) recovery of IE-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.
As for the remaining two issues involving the proper amount of normalized energy to
calculate true-up and class deferral rates, the parties indicated 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. Once they have engaged in further settlement
discussions, the parties agreed to submit a resolution to the Commission if one is reached. If
they cannot agree on a settlement, the parties will formulate a hearing schedule to be filed with
the Commission so that a formal Notice of Hearing may be issued.
Commission Findinf!s:Because we find they have a direct and substantial interest in
this proceeding, we grant the Industrial Customers ' Petition to Intervene in Case No. IPC-03-
pursuant to Commission Rules of Procedure 74 and 75.
To further explore the possibility of settlement and achieve a quicker resolution than
may be available through an evidentiary hearing, the Commission finds it reasonable to move the
following four issues to Case No. IPC-01-16 for further proceedings: 1) pricing of real-time
transactions between Idaho Power and IE; 2) recovery of IE- Tri State Transmission costs; 3)
Company sharing of the anticipated FERC settlement; and 4) continuance of payment for IE
management contract benefits.The remaining two issues involving the proper amount of
normalized energy to calculate true-up and class deferral rates shall continue under Case No.
IPC-03-
Although we support further settlement discussions if the potential for an equitable
resolution exists, the Commission urges the parties to move expeditiously so that these matters
can be resolved in a timely manner.
ORDER NO. 29258
ORDER
IT IS THEREFORE ORDERED that the Petition to Intervene filed by the Industrial
Customers of Idaho Power is granted. All parties in this proceeding serve all papers hereafter
filed in this matter on all parties of record. This Intervenor is represented by the following for
purposes of service:
Peter J. Richardson
Richardson & O'Leary
99 East State Street, Suite 200
PO Box 1849
Eagle, Idaho 83616
IT IS FURTHER ORDERED that proceedings regarding 1) the proper amount of
normalized energy to compute the true-up rate, and 2) the proper amount of normalized energy to
compute the rates to be paid on PCA amounts deferred from the prior PCA period will continue
under Case No. IPC-03-
IT IS FURTHER ORDERED that proceedings regarding 1) pricing of real-time
transactions between Idaho Power and IE; 2) recovery of IE- Tri State Transmission costs; 3)
Company sharing of the anticipated FERC settlement; and 4) continuance of payment for IE
management contract benefits will proceed separately under Case No. IPC-01-16.
ORDER NO. 29258
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of June 2003.
Gi?I PAUL KJEL ER, PRESIDENT
JJ&u~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~~
Je D. Jewell
Commission Secretary
O:IPCE0305 In3
ORDER NO. 29258