20030603Notice of Application Order No 29253.pdf

Office of the Secretary
Service Date
June 3, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY TO REVISE ITS
DEPRECIATION RATES FOR PLANT IN SERVICE. CASE NO. IPC-O3- 7
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF INTERVENTION
DEADLINE
NOTICE OF PUBLIC
WORKSHOP
NOTICE OF COMMENT!
PROTEST DEADLINE
ORDER NO. 29253
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power Company filed an Application on
May 6 2003 , requesting authority to revise its depreciation rates for the Company s electric plant
in service. Idaho Power s depreciation rates have not been significantly changed since the
Commission issued Order No. 24739 in 1993.Although the Company total annual
depreciation expense would increase by nearly $7 million under its proposal the present
Application does not request a change in electric rates
YOU ARE FURTHER NOTIFIED that the proposed depreciation rates are based on
the results of a detailed depreciation study of Idaho Power s electric plant in service as of
December 31 , 2001 that was conducted by Gannett Fleming, Inc. Gannett Fleming identified
and measured changes as well as recommended depreciation rates.The most significant
proposed rate change is in the category of General Plant, which Gannett Fleming recommends be
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
NOTICE OF COMMENT/ PROTEST DEADLINE
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29253
increased from 5.52% to 11.24%. Gannett Fleming s study also updates net salvage percents and
service life estimates for all plant assets.
YOU ARE FURTHER NOTIFIED that Idaho Power s current depreciation rates have
been applied to the investment in each primary and subplant account. The proposed depreciation
rates are based on the straight line, remaining life method, average service life procedure for all
electric plant.A summary schedule detailing the December 31 , 2001 original plant cost
depreciation accrual amount, and rate is set forth in Attachment 1 to the Application.
YOU ARE FURTHER NOTIFIED that based on $2 900 657,420 of depreciable
electric plant in service on December 31 , 2001 , Idaho Power s requested depreciation rate
changes would increase its total annual depreciation expense by $6 994 021. The Company
Application states that Idaho Power believes the proposed depreciation changes using the
average service life procedure are reasonable and appropriate.Although Gannet Fleming
recommended the equal life procedure (ELG) be used, Idaho Power requested that Gannet
Fleming prepare an alternative (average service life) procedure due to the large impact ELG
would have on the Company s revenue requirement. While the Company notes that it agrees
with Gannet Fleming that ELG best matches the recovery rate of capital investment with the
asset service value, Idaho Power proposes that average service life procedure be used in this
proceeding.
YOU ARE FURTHER NOTIFIED that Idaho Power Company requests that its
Application be processed pursuant to the Commission s Rules of Procedure, i., by written
submission rather than by hearing. Commission Rules of Procedure, IDAPA 31.01.01.201-204.
The Company asks that the Commission issue an Order approving the proposed depreciation
rates effective December 1 , 2003.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the
Company s Application.The Commission has preliminarily found that the public interest
regarding the Company s proposal to revise its depreciation rates for plant in service may not
require a hearing to consider the issues presented and that the Application may be processed
under Modified Procedure , by written submission rather than by hearing.IDAPA
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
NOTICE OF COMMENT/ PROTEST DEADLINE
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29253
31.01.01.201-204. In so doing, the Commission notes that Modified Procedure and written
comment have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission will consider the matter on its merits and enter its
Order without a formal hearing. If comments or protests are filed within the deadline, the
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order on the basis of the written positions before it. IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings will be conducted pursuant to
the Rules of Procedure adopted by the Idaho Public Utilities Commission. IDAPA 31.01.01.000
et seq.
YOU ARE FURTHER NOTIFIED that the Application together with supporting
workpapers, testimonies and exhibits, have been filed with the Commission and are available for
public inspection during regular business hours at the Commission offices. The Application and
testimonies (excluding exhibits) are also available on the Commission s Web site at
www.puc.state.id.under the "File Room" icon.
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses must file a Petition to
Intervene with the Commission pursuant to this Commission s Rules of Procedure 72 and 73
IDAPA 31.01.01.072 and -073. Persons intending to participate at the workshop and participate
in potential settlement negotiations should also file a Petition to Intervene on or before June 18,
2003. Persons desiring to present their views without parties ' rights of participation and cross-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
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NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29253
examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
NOTICE OF PUBLIC WORKSHOP
YOU ARE HEREBY NOTIFIED that the Commission has scheduled a public
workshop in this matter on Tuesday, July 8, 2003 at 9 a.m. in Auditorium West of the Idaho
Power Company office located at 1220 W. Idaho Street, Boise. The public workshop will
offer interested parties an opportunity to meet with the Company and Commission Staff to ask
questions, receive information, and possibly resolve issues in dispute.
YOU ARE FURTHER NOTIFIED that the parties participating in the workshop may
offer to settle some or all of the issues to be discussed at the workshop.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held in
facilities meeting the accessibility requirements of the Americans with Disabilities Act (ADA).
Persons needing the help of a sign language interpreter or other assistance in order to participate
in or to understand testimony and argument at a public hearing may ask the Commission to
provide a sign language interpreter or other assistance at the hearing. The request for assistance
must be received at least five (5) working days before the hearing by contacting the Commission
Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretary~puc.state.id.
NOTICE OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. IPC-03- 7 is Friday, August 8, 2003. Persons desiring a hearing must specifically
request a hearing in their written protests or comments. If possible, the Commission encourages
the parties to resolve the issues in dispute and submit a stipulated settlement prior to this date.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
NOTICE OF COMMENT/ PROTEST DEADLINE
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29253
YOU ARE FURTHER NOTIFIED that the deadline for Idaho Power Company to file
written reply comments with respect to this case is Tuesday, August 19, 2003.
YOU ARE FURTHER NOTIFIED that written comments concerning this
Application must be mailed to the Idaho Public Utilities Commission and Idaho Power Company
at the following addresses:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983
BARTON L. KLINE
MONICA B. MOEN
JOHN R. GALE
IDAHO POWER COMPANY
O. BOX 70
BOISE, ID 83707
Email: bkline~idahopower.com
mmoen~idahopower .com
rgale~idahopower.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail addresses listed
above.
ORDER
IT IS HEREBY ORDERED that the foregoing scheduling be adopted.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
NOTICE OF COMMENT/ PROTEST DEADLINE
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29253
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3,..t.
day of June 2003.
ATTEST:
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Commission Secretary
O:IPCEO307 In
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF INTERVENTION DEADLINE
NOTICE OF COMMENT/ PROTEST DEADLINE
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29253
GJ(PAUL KJ ER, PRESIDENT
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MARSHA H. SMITH, COMMISSIONER
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