20041105Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. IPC-04-, Order No. 29622
November 4, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Idaho Power seeks recovery of cloud-seeding program costs
Boise - Idaho Power Co. is asking state regulators to create a deferred account for expenses
associated with a cloud seeding program for possible later recovery from customers. The
company anticipates it will spend about $950 000 on the program this winter.
The company had sought to include cloud seeding expenses in its rate case earlier this year, but
the Idaho Public Utilities Commission said there was not enough data yet available to
demonstrate the benefits of the program. The company s recent cloud-seeding efforts began in
2001 during the Western energy crisis caused by drought and record-high wholesale market
pnces.
The company claims previous cloud seeding programs have improved preciptation. The utility
claims to have measured a 16 percent increase in precipitation from Feb. 1 to April 15, 2003.
That is equal to 2.2 inches of more water in the Payette River Basin, or 110 000 acre-feet spread
over the basin s 938 square miles.
Part of the criteria the commission will use in determining if the expenses should be included in
rates is if any extra precipitation created is a financial benefit to ratepayers. A successful cloud
seeding program would create additional snow pack that subsequently reaches the rivers and
flows through the company s hydroelectric dams. The company saves money when it can use its
own hydroelectric power rather than generating power from higher-cost resources like natural
gas plants or buying it on the wholesale market.
Allowing costs of the program to be recovered from ratepayers does not have an immediate
effect on rates. If the commission approves Idaho Power s application, 90 percent of the costs of
the program would be included in the company s power adjustment process next spring. At that
time, Idaho Power will submit all its extraordinary power supply expenses to the commission. Of
those expenses the commission deems necessary and prudent, 90 percent are allowed to be
recovered from customers. The remaining 10 percent is borne by shareholders.
The commission is accepting written comments on Idaho Power s proposal through Nov. 24. The
commission will proceed under a modified procedure that allows the case to be handled through
written public comments rather than by public hearing. However, comments may request a
public hearing. Comments are accepted via e-mail by accessing the commission s homepage at
www.puc.state.id.and clicking on "Comments & Questions." Fill in the case number (IPC-
04-24) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ill
83720-0074 or faxed to [phone]. Comments should be coped to Barton Kline, Idaho
Power Company, PO Box , Boise, ill, 83703 , or emailed to bkline~idahopower.com.
A full text of the commission s order, along with other documents related to this case, are
available on the commission s Web site. Click on "File Room" and then on "Electric Cases" and
scroll down to Case No. IPC-04-24.