20050715Order No 29821_notice of application.pdf

Office of the Secretary
Service Date
July 15, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY POWER
COMPANY FOR AN ORDER AUTHORIZING)
THE BLANKET SALE OF AIR EMISSION
ALLOWANCES AND FOR AN ACCOUNTING)ORDER.
CASE NO. IPC-O5-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 29821
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on June 9, 2005 , Idaho Power Company filed
an Application with the Commission for (1) blanket authority to sell surplus sulfur dioxide
S02") allowances obtained by the Company under the provisions of the federal Clean Air Act
Amendments of 1990; and (2) an accounting order to provide for recording any sale(s) of such
allowances.
YOU ARE FURTHER NOTIFIED that Title IV of the Clean Air Act Amendments of
1990 establishes a national program for the reduction of acid rain. 42 USCA ~~ 7651 et seq.
The centerpiece of the acid rain program is the incentive- or market-based
, "
cap and trade" S02
emission program. Under the cap and trade program, the Environmental Protection Agency
(EP A) sets a cap or ceiling on the total amount of S02 emissions allowed nationwide. The EP
then allocates this amount among utility generating units through annual emissions allowances.
Each allowance provides the authority to emit one ton of S02. These allowances are fully
marketable commodities and can be sold on the open market or in EPA-sponsored auctions.
YOU ARE FURTHER NOTIFIED that Idaho Power has an ownership interest in five
thermal power plants in the western United States. Three of these power plants are coal-fired
and receive allocations of S02 allowances from the EP A. These plants are: (1) Jim Bridger
Units 1 through 4 (1/3 interest); (2) North Valmy Units 1 and 2 (1/2 interest); and (3) Boardman
(1/10 interest). Idaho Power believes that, after retaining sufficient allowances, including a
reasonable cushion for change and contingencies, it can make surplus S02 allowances available
for sale.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29821
YOU ARE FURTHER NOTIFIED that, in this Application, Idaho Power seeks the
authority to sell and to track the revenues obtained through any potential sale of the S02
allowances; it does not seek a Commission decision regarding how the revenue from an S02
allowance sale shall be treated. The Company anticipates a subsequent filing in the near future
to address the issue of how to treat the revenue obtained from the future sale of S02 allowances.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the
Application in this case and has preliminarily determined that the public interest in this matter
may not require a hearing to consider the issues presented, and that the issues raised by the
Application may be processed under Modified Procedure, i.e., by written submission rather
than by hearing. IDAPA 31.01.01.210 - 204.
YOU ARE FURTHER NOTIFIED that the Commission may 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. IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to Idaho Power s Application and the use of Modified Procedure in this
case is twenty-one (21) days from the service date of this Order. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application
shall be mailed to the Commission and the Applicant at the addresses reflected below:
Commission Secretary Barton L. Kline
Idaho Public Utilities Commission Larry RipleyPO Box 83720 Idaho Power Company
Boise, ID 83720-0074 PO Box 70
Boise, ID 83707-0070
E- Mail: bkline(fYi dahopower. comStreet Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
JohnR. Gale
Vice President, Regulatory Affairs
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
Mail: rgale(fYidahopower.com
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29821
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission s home page located at www.puc.idaho.gov. 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 Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If written comments or protests are received 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 based on the written comments before it. IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices or on the Commission s website www.puc.idaho.gov by clicking on "File
Room" and "Electric Cases.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power be processed by
Modified Procedure IDAPA 31.01.01.201-204. Persons interested in submitting written
comments in this matter must do so no later than twenty-one (21) days from the service date of
this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29821
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /tjK
day of July 2005.
ATTEST:
D. Jewell
ission Secretary
O:IPCE0520 _kdp
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29821
NDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANS N, COMMISSIONER