20051209Initial report of SO2 allowance sales.pdf

:=R IDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
BARTON L. KLINE
Senior Attorney
An IDACORP Company
December 9 2005
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Jean D. Jewell , Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
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Re:Case No. IPC-05-
Initial Report of Proceeds From S02 Allowance Sales
Dear Ms. Jewell:
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Please find enclosed for filing an original and seven (7) copies of Idaho
Power Company s Initial Report of Proceeds from S02 Allowance Sales regarding the
above:-described case.
I would appreciate it if you would return a stamped copy of this transmittal
letter in the enclosed self-addressed , stamped envelope.
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Barton L. Kline
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Enclosures
Telephone [phone], Fax [phone] E-mail BKlinertYidahopower.com
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BARTON L. KLINE ISB #1526
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Phone: [phone]
FAX: [phone]
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Attorneys for Idaho Power Company
Express Mail Address
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
INVESTIGATION OF APPROPRIATE
RATEMAKING TREATMENT OF
IDAHO POWER COMPANY'S S02
ALLOWANCE SALE PROCEEDS.
CASE NO. IPC-05-
INITIAL REPORT OF PROCEEDS
FROM S02 ALLOWANCE SALES
As provided in Order No. 29852 issued in Case No. IPC-05-, Idaho
Power Company herewith files its initial report of the receipt of proceeds from the sale of
S02 emission allowances.
The Company has received the proceeds from the sale of 60 000 S02
emission allowances. The total net proceeds amount is $57 055 000. Net proceeds are
total amounts received less broker s fees of $20 000.
The accounting entries used to record the initial sales are as follows:
INITIAL REPORT OF PROCEEDS FROM S02 ALLOWANCE SALES, Page
(1 )
To record the sale of emission allowances and establishing a reserve for
the Idaho (94.1 %) and Oregon (4.8%) portion in A/C 254 with the FERC portion (1.1 %)
recognized immediately in A/C 411.
143 Other Accounts Receivable
699 XOOO01 999 143900
$XXX.
254 Other Regulatory Liabilities
699 XOOO01 999254409
$XXX.
411 .8 Gains for Disposition of Allowances
699 XOOO01 999 411 .804
XXX.
(2)
To record the receipt of cash from the sale of emission allowances.
131 Cash
699XOO01 999 131000
143 Other Accounts Receivable
699 XOOO01 999 143900
$XXX.
$XXX.
(3)
To record the payment of associated fees to sell emission allowances.
The fees will be allocated with the same percentages as the sale of emission
allowances (Idaho (94.1 %) and Oregon (4.8%) portion in A/C 254 with the FERC portion
(1.1 % in A/C 411.8).
254 Other Regulatory Liabilities
699 XOOO01 999254409
$XXX.
411.8 Gains for Disposition of Allowances
699 XOOO01 999411.804
XXX.
131 Cash
699XOO01 999 131000
$XXX.
INITIAL REPORT OF PROCEEDS FROM S02 ALLOWANCE SALES , Page 2
Upon receipt of the net sale proceeds, current taxes will be accrued in
account 236 Taxes Accrued. The accrued taxes will be remitted to federal and state
authorities in the next appropriate tax payment period following the sale transactions(s).
Because recognition of the sales is being deferred to a reserve account (account 254)
for financial accounting purposes , appropriate deferred taxes (account 190
Accumulated Deferred Income Taxes) will be accrued for these amounts placed in the
reserve account. The amount available (after payment of associated fees) for final
disposition will not exceed 100 percent of the after-tax proceeds (this excludes the
amounts accrued in separate accounts for the carrying/interest charge). The deferred
taxes will reverse as the 254-account balance is recognized.
Dated this 9th day of December, 2005.
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BARTON L. KLINE
Attorney for Idaho Power Company
INITIAL REPORT OF PROCEEDS FROM S02 ALLOWANCE SALES , Page 3