20070329notice_of_application_order_no_30287.pdf

Office of the Secretary
Service Date
March 29, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ACCOUNTING ORDER CLARIFYING THE
ACCOUNTING FOR FUTURE PENSION
OBLIGATIONS
NOTICE OF APPLICATION
CASE NO. IPC-07-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30287
On March 20, 2007, Idaho Power Company filed an Application seeking an
accounting order to clarify the accounting for future pension obligations. The Company
requested that its Application be processed by Modified Procedure. With this Order the
Commission authorizes the use of Modified Procedure and establishes a deadline for the
submission of comments.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power is seeking an Order authorizing it
to: (1) change from accrual to cash accounting to determine future contributions to defined
benefit pension plans; and (2) defer future defined benefit pension plan contributions and record
them as regulatory assets with ratemaking treatment of such regulatory assets to be determined in
subsequent revenue requirement proceedings. The Company states that it is not requesting
current approval of future ratemaking treatment of deferred expenses associated with the
Company s defined benefit pension plans, but is only requesting authority to implement
regulatory accounting practices.
YOU ARE FURTHER NOTIFIED that Idaho Power accounts for defined benefit
penSIOn expense in accordance with Statement of Financial Accounting Standards 87
(SF AS/F AS 87). The Company states that in its 2003 general rate case, IPC-03-, the
Commission did not allow the accrued SF AS 87 amount to be included in the Company
revenue requirement; however, the Commission did not direct the Company to change to a cash
method to account for defined benefit pension expense. Additionally, the Company refers to
Case No. UWI-04-04 where United Water utilized the SF AS 87 accrual methodology, and the
Commission determined that using actual cash contributions, not accrued obligations, was the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30287
appropriate way to determine the amount to recover in rates for the defined benefit pension
expense.
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 and exhibits are also available on the Commission s Web site at www.puc.idaho.gov
under "File Room.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. IPC-07-07. 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., 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. IDAPA 01.01.01.204.
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-07-07 is 21 days from service date of this Order. 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30287
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address For Express Mail:
Barton L. Kline, Senior Attorney
Lisa Nordstrom, Attorney II
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: bkline(~jdahopower.com
lnordstrom~idahopower. com
472 W. Washington Street
Boise, ID 83702-5983 Ric Gale, VP, Regulatory Affairs
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: rgalerfYidahopower.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.
FINDINGS/CONCL USIONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
its Application seeking an accounting order to clarify the accounting for future pension
obligations, and the issues involved in this case by virtue of Title 61 , Idaho Code, including
Idaho Code 99 61-129, 61-301 , 302, 303 , 61-502, 61-503 , and 61-524 and the Commission
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 , by written submission
rather than by hearing. IDAP A 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.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power Company for an
accounting order to clarify the accounting for future pension obligations be processed by
NOTICE OF APPLICA nON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30287
Modified Procedure IDAPA 31.01.01.201-.204.Persons interested in submitting written
comments in this matter or protesting the use of Modified Procedure should do so no later than
21 days from the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this C2.
day of March 2007.
. II
! ~~
r;/I
PAUL KJELL DER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ISSIONER
ATTEST:
~pi(rdJ
C mmission Secretary
O:IPC-07-07 _
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30287