20041230Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. IPC-04-, Order No. 29670
December 30, 2004
Contact: Gene Fadness [phone]
Website: www.puc.idaho.2ov
Commission approves cloud seeding account
Boise - The Idaho Public Utilities Commission approved Idaho Power Company s application to
include about $950 000 in cloud seeding costs when the company files its power cost rate
adjustment next spring.
Idaho Power presented sufficient evidence to establish that the cloud seeding program was cost-
effective during the last two winters " the commission said.
Cloud seeding during the 2002-03 winter produced an estimated 110 00 acre-feet of increased
run-off to feed Idaho Power s hydroelectric generators and another 68 000 acre-fee in the winter
of 2003-04. Without that additional runoff, Idaho Power would have had to spend between $1.
and $1.8 million in additional generation during the 2002-03 winter and $1.4 million last winter.
The application approved by the commission today includes only the costs of this winter s cloud
seeding, estimated to be about $950 000. 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.
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.
Allowing costs of the program to be recovered from ratepayers does not have an immediate
effect on rates. Ninety percent of the costs of the program will be included in the company
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
borne by shareholders.
While the commission approved Idaho Power expenses for one winter s cloud seeding, it urged
the company to continue exploring demand-side management and energy efficiency programs.
Demand-side management programs to reduce customer energy use, thereby delaying the need
to build energy production and transmission facilities, may be a better use of energy management
funds provided by Idaho Power s customers " the commission said.
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 "Recent Orders and
Notices " and scroll down to Order No. 29670.
Interested parties may petition the commission for reconsideration by no later than Jan. 20.
Petitions for reconsideration must set forth specifically why the petitioner contends the order is
unreasonable, unlawful or erroneous. Petitions should include a statement of the nature and
quantity of evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.
Box 83720, Boise ill 83720-0074, or faxed to 208-334-3762.