20041101Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:OCTOBER 27, 2004
RE:CASE NO. IPC-04-
IDAHO POWER COMPANY'S APPLICATION TO RECOVER CLOUD
SEEDING PROGRAM EXPENSES FOR THE 2004-2005 WINTER PERIOD
On October 21 , 2004, Idaho Power Company filed an Application for an accounting
order to allow recovery for costs of its cloud seeding program for the winter of 2004-2005. The
Application states that the Company has operated a cloud seeding progra~ for a number of years
and that the Commission did not allow recovery of its expenses in the Company s recent rate
case. The Company filed with its Application additional infonnation that it asserts demonstrates
scientifically measured benefits of the Company s cloud seeding program during the winter of
2003-2004. Noting that the Company has funded two years of cloud seeding without any cost
recovery, the Application states Idaho Power would like to be able to recover its costs associated
with continuing its program during the winter of 2004-2005. Idaho Power clarifies in its
Application that it is not asking the Commission to defer expenditures associated with the cloud
seeding program on a long-tenn basis, but is requesting only that the Commission authorize the
Company to defer the expenses associated with the program during the upcoming winter. The
Company estimates those costs to be approximately $950 000, which the Company proposes to
capture "on the same ninety percent-ten percent (90%/10%) ratio by which other power supply
expenses are shared between customers and shareholders in the PCA.
Idaho Power included with its Application prefiled direct testimony to provide
additional infonnation on the results of its cloud seeding program. The Company asks the
Commission to process its Application by Modified Procedure, but states the Company "stands
DECISION MEMORANDUM
ready for immediate consideration of this Application if it is the Commission s detennination
that hearings should be held.
Staff recommends the Commission issue a Notice of Application and process the
Application by Modified Procedure.
COMMISSION DECISION
Should the Application of Idaho Power Company for an accounting order for its
cloud seeding program for the winter of 2004-2005 be processed by Modified Procedure?
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Weldon Stutzman
VldJM:IPC-O4-24 ws
DECISION MEMORANDUM