20070829Initial report of proceeds.pdf

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An 10ACORP Company
REGE\VED
Barton L. Kline
Senior Attorney f--
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August 27 2007
Jean D. Jewell, Secretary
Idaho Public Utilities Commi$sion
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
Re:Case No. I PC-E- db - ~a
In the Matter of Idaho Power's Petition for a Determination of the
Appropriate Ratemaking Treatment of Proceeds from Sales of
Surplus Sulfur Dioxide Emission Allowances 2007
Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of Idaho Power
Company Initial Report of Proceeds from Sales of Surplus Sulfur Dioxide Emission
Allowances in 2007 in the above-referenced matter.
I would appreciate it if you would return a stamped copy of this transmittal letter in
the enclosed self-addressed , stamped envelope.
Very truly yours
Barton L. Kline
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Enclosures
O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
BARTON L. KLINE , ISB # 1526
LISA D. NORDSTROM , ISB # 5733
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise , Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER'
PETITION FOR A DETERMINATION OF
THE APPROPRIATE RATEMAKING
TREATMENT OF PROCEEDS FROM
SALES OF SURPLUS SULFUR DIOXIDE
EMISSION ALLOWANCES IN 2007
) CASE NO. IPC-E- O~-;2D
IDAHO POWER'S INITIAL REPORT OF
PROCEEDS FROM SALES OF
SURPLUS SULFUR DIOXIDE
EMISSION ALLOWANCES IN 2007
In 2005, in Order No. 29852 issued in Case No. IPC-05-, the
Commission granted Idaho Power Company ("Idaho Power" or "the Company ) blanket
authority to sell surplus sulfur dioxide emission allowances.
In Order No. 29852, the Commission also approved the accounting
treatment to be used by the Company to record the sales of surplus sulfur dioxide
emission allowances from the time proceeds are received until the Commission
determined the appropriate ratemaking treatment of the proceeds.
In Order No. 29852 , the Company was also directed to file a report with
the Commission within sixty (60) days of the receipt of any proceeds form the sale of
surplus sulfur dioxide emission allowances.
IDAHO POWER'S INITIAL REPORT OF PROCEEDS FROM SALES OF SURPLUS
SULFUR DIOXIDE EMISSION ALLOWANCES IN 2007 - Page
During 2007, conditions in the emission allowances market were such that
Idaho Power sold surplus sulfur dioxide emission allowances. In 2007 , the Company
has received , so far, proceeds from the sale of 20 000 surplus sulfur dioxide emission
allowances. The total net proceeds amount is $11 266,500. Net proceeds are total
amounts received less broker s fees of $5 000.
In Order No. 30041 , issued in Case No. IPC-05-26, the Commission
approved a sharing arrangement in which 90% of the state of Idaho s 94% jurisdictional
share of the net sale proceeds, including tax effects , were allocated to customers and
the remaining 10% share was allocated to Idaho Power s shareowners. In Order No.
30041 , the Commission directed the Company to include the sulfur dioxide allowance
sales proceeds in the PCA to reduce the level of PCA rates.
Idaho Power proposes that the same 90%/10% sharing of benefits be
utilized to allocate the proceeds from sales of surplus sulfur dioxide emission
allowances made in 2007. However, the Company may propose to provide the benefit
of the surplus emission sales to customers in a form other than a PCA rate reduction.
Idaho Power will make a subsequent filing to propose how the benefits should be
provided to customers.In this pleading Idaho Power is providing the Commission
notice of (1) the amounts of proceeds received so far and (2) that the Company intends
to use the same interim accounting for proceeds that the Commission approved in
2005.
In accordance with the accounting approved in the Commission s Order
No. 29852 , the Company is utilizing the following accounting entries to record the sales
IDAHO POWER'S INITIAL REPORT OF PROCEEDS FROM SALES OF SURPLUS
SULFUR DIOXIDE EMISSION ALLOWANCES IN 2007 - Page 2
of surplus sulfur dioxide emission allowances made thus far in 2007 as follows:
(1 )
143 Other Accounts Receivable
699 XOOO01 999 143900 $XXX.
254 Other Regulatory Liabilities
699 XOOO01 999254409 $XXX.
411 .8 Gains from Disposition of Allowances
699 XOOO01 999 411804 $XXX.
(2)
To record the receipt of cash from the sale of emission allowances.
131 Cash
143 Other Accounts Receivable
699 XOOO01 999 143900
$XXX.
$XXX.
(3)
To record Idaho Power s 10% share of the net proceeds from the sale of
emission allowances.
254 Other Regulatory Liabilities
699 XOO01 999254409 $XXX.xX
411800 Gains From Disposition of Allowance
699 XOO01 999411804 $XXX.
This initial report covers surplus sulfur dioxide emission allowance sales
during 2007 as of the date of this filing. Proceeds received after the date of this filing
will be included in a subsequent report.
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Respectfully submitted this 21-day of August 2007.
BARTON L. KLINE
Attorney for Idaho Power Company
IDAHO POWER'S INITIAL REPORT OF PROCEEDS FROM SALES OF SURPLUS
SULFUR DIOXIDE EMISSION ALLOWANCES IN 2007 - Page 3