20060928notice_of_application_ipc.pdf

Office of the Secretary
Service Date
September 28, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ACCOUNTING ORDER FOR TREATMENT
OF THE DEMAND SIDE MANAGEMENT
PROGRAMS
CASE NO. IPC-O6-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on September .11 , 2006, Idaho Power
Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) for an accounting order authorizing the Company to track its
transactions for demand side management (DSM) programs. As reflected in the Company
Application, since the 2002 approval of the Energy Efficiency Rider (Rider) by the Commission
in Order No. 29026, DSM programs have been an integral part ofthe Company s operations. On
May 13, 2005, in Order No. 29784, the Commission approved an increase in the funding and
program expenditures associated witli the Rider by authorizing the collection of 1.5% of
customers ' base revenues.
According to Generally Accepted Accounting Principles (GAAP), Statement of
Financial Accounting Concept (SFAC) No. 6, ~~ 70, 78-, 215, money collected and expended
as part of a company s standard business needs to be reflected on the company s income
statement.
Presently Idaho Power utilizes the following accounting entries to track rider funds:
1. As funding is received from customers, the following transaction is made
to record cash received and set up the obligation to spend the money in
the future on specific programs funded through the Energy Efficiency
Rider:
Dr. Account 131000 - Cash
Cr. Account 254201 - Regulatory Liability
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
2. As DSM program expenditures are made , the following transaction
is made to record cash paid and reduce the liability account:
Dr. Account 254201 - Regulatory Liability
Cr. Account 131000 - Cash
These accounting entries, the Company contends, accurately track DSM-related regulatory
liabilities by recording all transaction activity exclusively through the Company s balance
sheet accounts.
The Company in this Application, however, in addition to continuing the above
mentioned balance sheet accounting entries, to be consistent with GAAP standards
proposes to implement an automatic "monthly voucher" to parallel the balance sheet
activity in the Company s income statement. At the end of each month, the Company
would make a set of accounting entries to recognize the expenditures made in serving the
regulatory obligation along with an equal, offsetting entry to recognize the proceeds from
Energy Efficiency Rider funds. To accomplish this objective, the proposed accounting
entries are:
Dr. Account 908.xxx - Customer Service Operating Expense
Cr. Account 456.xxx - Other Operating Revenue
Because the incoming and outgoing dollars recognized in the income statement
sub accounts will be of equal amounts, the net result of the Company s net income will be
zero. Idaho Power contends therefore that there are no current economic tax liability
changes or any other net financial effects from the inclusion of these income statement
accounting entries.However, for external reporting purposes, the accounting trail of
specific DSM related funding and expenditures will be much easier to track through
income statement detail rather than relying solely on cumulative balance sheet activity.
In summary, the Company states that it is not proposing to change its current
balance sheet accounting procedures regarding Energy Efficiency Rider funding. The
Company seeks only to make parallel accounting entries to the income statement in an
attempt to more closely comply with GAAP standards and auditing efficiencies. If the
Company s proposed accounting entries are approved, it states that there will be no effect
on the Company s net income. Nor, it states, are there any ratemaking implications
associated with its proposal.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE2
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings
of record in Case No. IPC-06-20. The Commission has preliminarily found that the
public interest in this matter may not require a hearing to consider the issues presented
and that issues raised by the Company s filing may be processed under Modified
Procedure , by written submission rather than by hearing. Reference Commission
Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments
or protests with respect to Idaho Power s Application and the use of Modified Procedure in
Case No. IPC-06-20 is Wednesday, November 1,2006.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and
may enter its Order without a formal hearing. If comments or protests are filed within the
deadline, the Commission will consider them and in its discretion may set the matter for
hearing or may decide the matter and issue its Order based on the written positions before
it. Reference IDAP A 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
No. IPC-06-20 should be mailed to the Commission and 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:
Lisa D. Nordstrom
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: lnordstrom(f!)jdahopower.com
bkline~idahopower .com
472 W. Washington Street
Boise, ID 83702-5983 Jeannette C. Bowman, Senior Analyst
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: i bowman~idahopower.com
All comments should contain the case caption and case number shown on the first page
this document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE3
the front of this document. These comments must also be sent to Idaho Power at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-06-
may be viewed at www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or
can be viewed during regular business hours at the Idaho Public Utilities Commission, 472
W. Washington Street, Boise, Idaho and at the general business office of Idaho Power
Company, 1221 W. Idaho Street, Boise, Idaho.
DA TED at Boise, Idaho this )..fJ f1..day of September 2006.
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Jeirl.D. Jewell
Collimission Secretary
blsfN:IPC-06-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE4