20061005notice_of_application_order_no_30142.pdf

Office ofthe Secretary
Service Date
October 5, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ACCOUNTING ORDER REGARDING
AMERICAN FALLS REPLACEMENT DAM
REFUNDING BONDS
NOTICE OF APPLICATION
CASE NO. IPC-06-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30142
On September 7, 2006, Idaho Power Company filed an Application seeking an
accounting order for authority to amortize the principal balance owed on American Falls
Replacement Dam Refunding Bonds (the Bonds) over the remaining term of the Bonds and
operating license of the American Falls Dam. With this Order the Commission issues notice of
the Company s Application, authorizes the use of Modified Procedure, and sets a deadline for
written comments and/or protests.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that according to the Company s Application, in
April 2000 the Company refinanced the Bonds to a variable rate, interest-only mode. The
principal amount of $19 885 000 is due in full in February 2025, the same time that the
Company s operating license expires at the American Falls Dam. The interest on the Bonds is
currently being paid monthly and expensed to Water for Power (Account 536). The principal
balance is currently recorded as a liability (Account 224200) with a corresponding deferred debit
(Account 186727) in the same account.
YOU ARE FURTHER NOTIFIED that Idaho Power states that since refinancing the
Bonds in 2000 it has not amortized the principal amount and has charged only the interest
payments to the Water for Power expense. The Company states that as a result, Idaho customers
have only been paying the interest portion of the debt since the 2003 general rate case (IPC-
03-13). While this has resulted in lower overall rates in the short term, the principal balance and
carrying charge will come due in the future, affecting rates.
YOU ARE FURTHER NOTIFIED that the Company proposes that the deferred debit
be amortized over the remaining life of the Bonds and the license. The Application states that by
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30142
amortizing the deferred asset over the remaining lives of the Bonds and license, i., 2025
current retail customers receiving the benefits of this facility would fund the recovery of the
principal portion just as they are currently funding the interest portion. The Company proposes
amortizing the $19 885 000 in equal monthly amounts beginning January 2006 through
January 31 , 2025. This will result in an additional $1 042 008.72 annual O&M expense for the
years 2006 through 2024, and one month's amortization of $86 834.06 in 2025 before the Bonds
mature February 2025. The annual expense would be included in the next general rate case
test year.
YOU ARE FURTHER NOTIFIED that the Application, supporting workpapers
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission s Website at www.puc.idaho.gov under the
File Room" icon.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. IPC-06-19. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
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 if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAP A 31.01.01.204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30142
NOTICE OF COMMENT/PROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments
or protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. IPC-06-19 is October 25,2006. Persons desiring a hearing must specifically request
a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning this case
should be mailed to the Commission and to the Company at the addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Barton L. Kline
Lisa D. Nordstrom
John R. Gale
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: bklineifYidahopower.com
InordstromifYi dal10power. com
rgale(ii),idahopower. com
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
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.
FIND IN GS/CO N CL USI 0 NS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
its Application for authority to amortize the principal balance owed on American Falls
Replacement Dam Refunding Bonds, and the issues involved in this case by virtue of Title 61
Idaho Code, including Idaho Code ~~ 61-129, 61-301 , 302, 303, and 61-503 , and the
Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
The Commission has preliminarily determined that the public interest may not
require a hearing to consider the issues presented in this case, and that issues raised by the
Company s filing may be processed under Modified Procedure, i.e., by written submission
rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission notes that
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30142
Modified Procedure and written comments have proven to be an effective means for obtaining
public input and participation.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure should do so no later than October 25 2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 5t1..
day of October 2006.
PAUL KJELLAN
MARSHA H. SMITH, COMMISSIONER
ATTEST:
(~ '.'
Je~nD. Jewell U
Commission Secretary
O:IPC-06-19 dw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30142