20051118Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:NOVEMBER 15, 2005
SUBJECT:APPLICATION BY IDAHO POWER COMPANY TO INCLUDE
EXPENSES OF CLOUD SEEDING PROGRAM IN THE COMPANY'
PCA; CASE NO. IPC-05-
On October 28 , 2005 , Idaho Power Company filed an Application for an Order to
include its ongoing cloud seeding expenses in its annual Power Cost Adjustment (PCA). IPC has
operated a cloud seeding program for several years, and in December 2004 , the Commission
approved the Company s request for an Order authorizing it to defer the variable cloud seeding
costs incurred during the 2004-2005 winter. Idaho Power asserts that the data collected during
the past three years demonstrates the effectiveness of the cloud seeding program. The Company
values the additional streamflows produced by the program and associated benefits at 1.7 times
the program costs.
Idaho Power s Application states that it is requesting two things from the
Commission: (1) that the Commission allow the Company to defer the expenses it will incur to
continue the cloud seeding program during the winter of 2005-2006, (2) that the Commission
authorize the Company to include the future cloud seeding program expenses as a part of its PCA
rates on an ongoing basis beginning with the 2006-2007 PCA period. The Company is not
requesting recovery of its capital investment in the cloud seeding program but will include that
request in its general rate case. The Company requests that its Application be processed by
Modified Procedure.
Staff recommends that the Application of Idaho Power for an Order regarding
recovery of its cloud seeding program in the PCA be processed by Modified Procedure.
DECISION MEMORANDUM
COMMISSION DECISION
Should the Application of Idaho Power Company be processed by Modified
Procedure?
" "( .
I ) C----_.
Weldon Stutzman
blslM:IPC-O5-36 ws
DECISION MEMORANDUM