20060411notice_of_settlement_order_no_30016.pdf

Office of the Secretary
Service Date
April!!2006
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-
NOTICE OF SETTLEMENT
REQUEST FOR PUBLIC
COMMENT
ORDER NO. 30016
On June 9, 2005, Idaho Power Company (Idaho Power, Company) filed an
Application requesting: (1) blanket authority to sell surplus sulfur dioxide (S02) allowances;
and (2) an accounting order to provide for recording any sale(s) of such allowances. Case No.
IPC-05-20. The Company s Application also suggested that a determination of ratemaking
treatment for the proceeds be made at a later date.
On August 22, 2005, the Idaho Public Utilities Commission (Commission) approved
the Company s Application. Order No. 29852. The Commission, while reserving the review of
the reasonableness of each sale, granted Idaho Power s request for blanket authority to sell S02
emissions allowances and approved the accounting treatment proposed by the Company, on an
interim basis, until such time as the Commission determines the appropriate ratemaking
treatment of the proceeds from the sale of the S02 allowances. Id. The Company was ordered
to file a report with the Commission within 60 days of the receipt of any S02 proceeds. !d.
Additionally, the Commission ordered that a separate docket be opened for Staff to conduct
workshops and make a recommendation to the Commission regarding the appropriate
ratemaking treatment of S02 proceeds. Id.
This docket, IPC-05-, was opened and two workshops were held on November 7
and November 23, 2005, respectively. During the workshops the parties were unable to reach
agreement upon the ratemaking treatment of the proceeds. On March 6, 2006, the Commission
issued Order No. 29989, establishing a comment deadline of March 31 2006, and a subsequent
briefing schedule. On March 30, 2006, this comment deadline and briefing schedule were
vacated based upon the parties ' notification that an agreement had been reached. The Industrial
NOTICE OF SETTLEMENT
REQUEST FOR PUBLIC COMMENT
ORDER NO. 30016
Customers of Idaho Power and Micron were the only parties to petition for intervention, which
was granted.
NOTICE OF SETTLEMENT
The parties met on March 23 , 2006, and reached agreement upon an appropriate
ratemaking treatment for the allowance proceeds. The parties have signed a Stipulation
providing for the inclusion of the S02 allowance sales proceeds to be included in the Company
annual Power Cost Adjustment (PCA) proceeding, with 90% of the net proceeds to be passed on
to customers, and 10% of the net proceeds to be retained as a shareholder benefit. This
Stipulation has been filed with the Commission. Idaho Power has filed a Motion for Approval of
the Stipulation asking the Commission to accept the Stipulation in its entirety without material
change or condition.
YOU ARE HEREBY NOTIFIED that the Stipulation and the accompanying Motion
for Approval of the Stipulation are available for public inspection during regular business hours
at the Commission s office. In addition, the settlement Stipulation is available for viewing on
the Commission s website at www.puc.idaho.gov under "File Room" and then "Electric Cases.
REQUEST FOR WRITTEN COMMENT
YOU ARE FURTHER NOTIFIED that the Commission invites members of the
public to provide written comments in support or in opposition of the settlement Stipulation no
later than April 24, 2006. Written comments concerning Case No. IPC-05-26 should be
mailed to the Commission and to Idaho Power at the addresses reflected below.
Street Address For Express Mail:
Barton L. Kline
John R. Gale
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: bkline(g)idahopower .com
rgale~idahopower.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5983
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.idaho.gov. Click the "Comments and Questions
NOTICE OF SETTLEMENT
REQUEST FOR PUBLIC COMMENT
ORDER NO. 30016
icon, and complete the comment form, using the case number as it appears on the front of this
document. Comments submitted via e-mail must also be sent to the Company at the e-mail
addresses listed above.
ORDER
IT IS HEREBY ORDERED that persons desiring to submit written comments in
support or opposition of the settlement Stipulation must do so no later than April 24, 2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this It+-
day of April 2006.
p ":u . DER, P ID~
Lf~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~~
D. Jewell
mission Secretary
O:IPC-O5-
NOTICE OF SETTLEMENT
REQUEST FOR PUBLIC COMMENT
ORDER NO. 30016