20060721Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:DONOV AN E. WALKER
DATE:JULY 20, 2006
SUBJECT:IDAHO POWER'S APPLICATION FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY FOR THE EV ANDER ANDREWS
POWER PLANT - CASE NO. IPC-06-
On April 14 , 2006, Idaho Power Company filed an Application with the Commission
seeking a Certificate of Public Convenience and Necessity for the construction of the Evander
Andrews Power Plant. The Application also requests approval to rate base the prudent capital
costs for the project and recover prudent fuel costs in the Company s Power Cost Adjustment
mechanism.
On May 9, 2006, the Commission issued a Notice of Application and set an
intervention deadline of May 18, 2006. The Industrial Customers of Idaho Power (ICIP) and
Mountain View Power, Inc. each petitioned for intervention, which was granted. The
Commission Secretary issued a Notice of Parties on June 16 , 2006.
The parties all met for an informal prehearing scheduling conference on June 13
2006. Preliminary issues were discussed and the parties agreed to an initial discovery deadline
of July 12, 2006. The parties also agreed to reconvene the informal scheduling conference on
July 12, 2006, after the initial round of discovery was complete.
At the July 12 , 2006, scheduling conference the parties agreed to recommend a
procedural schedule to the Commission as follows:
October 2, 2006 Staff and Intervenor prefile of direct testimony
November 6 , 2006 Idaho Power s rebuttal testimony
November 20-2006 Technical Hearing
DECISION MEMORANDUM
The Company informed the parties at the July 12, 2006, scheduling conference that
the current price from Siemens, the winning bidder, will be available until December 15 , 2006
after which there may be an increase in price for the construction of the plant. November 20-
is the only available date for the technical hearing from October 25 through November. The
only other dates available for the technical hearing on the Commission s schedule would be
October 19-, or October 23-, 2006.
COMMISSION DECISION
(1) Procedural Schedule - Does the Commission wish to adopt the procedural
schedule recommended by the parties? (November 20-21 Technical Hearing, November 6
Rebuttal, October 2 Prefile)
(2) Rule 125 Public Workshop(s)- Rule 125 requires the Commission to determine
if the Staff should conduct a public workshop to dispense information regarding the Company
Application prior to Staff filing testimony in a case. IDAP A 31.01.010125.01. Rule 125 applies
only when a public utility files an application to increase any rate, fare, toll, rental or charge
regarding any classification or service. Id.
This Application, although seeking assurance that prudent costs for constructing the
plant will be recoverable, if granted will not itself result in an increase in rates. Does the
Commission wish Staff to conduct a Rule 125 workshop prior to filing its testimony?
(3) Public Hearing(s)- Does the Commission wish to schedule public hearing(s) for
this matter?
11 c; UiL--
DONOVAN E. WALKER
M:IPC-O6-09 dw2
DECISION MEMORANDUM