20080602final_order_no_30557.pdf

Office ofthe Secretary
Service Date
June 2, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPROPRIATE
DISPOSITION OF PROCEEDS FOR THE
SALE OF IDAHO POWER COMPANY'S S02
EMISSION ALLOW ANCES IN CY 2007 ORDER NO. 30557
CASE NO. IPC-07-
On April 14, 2008, the Commission issued Order No. 30529 concerning the
appropriate disposition of the proceeds from the sale of Idaho Power Company s sulfur dioxide
(802) emission allowances in calendar year 2007. In its Order, the Commission found that the
majority of the 802 proceeds (in excess of $16.1 million plus additional interest) should be used
to offset the increase in Idaho Power s Power Cost Adjustment (PCA) rates this year. Order No.
30529 at 3 , 9 and n.2. The Commission reserved judgment on the appropriateness of using
$500 000 of the 802 proceeds for an energy education proposal offered by the Idaho Energy
Education Project (IEEP or the "Project"). However, the Commission found that IEEP had not
provided sufficient detail for the Commission to fully evaluate the merits of IEEP' s educational
proposal. Consequently, the Commission ordered IEEP to provide additional information
regarding its proposal within 14 days. Id.
On April 28, 2008 , IEEP timely filed its supplemental information. The "Project"
requested additional time to meet with participating entities to more fully develop its proposal.
After having carefully reviewed IEEP's supplemental information, the Commission issues this
Order.
BACKGROUND
The procedural history of this case is generally set forth in our prior Order No. 30529.
Briefly, IEEP recommended that a portion of the 802 proceeds be utilized for energy education
and associated project grants. In particular, IEEP proposed that $250 000 be used for energy
education in the classroom (addressing energy conservation and efficiency) and $250 000 be
used for grants to participating schools to construct renewable and energy efficiency projects.
The grants for facilities would be issued to accompany the education component and limited to
schools served by Idaho Power.
ORDER NO. 30557
In Order No. 30529 the Commission reserved judgment on using the $500 000 of
S02 proceeds for the education proposal and directed IEEP to provide additional information
regarding its education proposal. In particular, IEEP was directed to provide the Commission
with a course/classroom syllabus and additional detail regarding any arrangements with school
districts or state agencies. Order No. 30529 at 9. IEEP was to file this additional information
with the Commission no later than April 28, 2008.
IEEP ADDITIONAL INFORMATION
In its response, IEEP described the structural framework for its proposed educational
project. IEEP proposed to develop an energy education curriculum using existing school
curriculum rather than create a "stand-alone" product. It asserted that some excellent curriculum
on energy education "is already available" and "could be readily adopted after training the
teachers in that curriculum.IEEP Response at 2. Under the proposed framework, IEEP
envisions that it will "partner" with other entities to acquire, review, develop, and implement the
proposed educational project. Potential partners include the Idaho Department of Education
(DOE), the Office of Energy Resources (OER), the National Energy Foundation, Idaho Power
and school districts/individual schools and/or individual teachers.
IEEP contacted and invited DOE, OER, and Idaho Power to assist in the development
and implementation ofthe project. IEEP envisions that the DOE will evaluate energy curriculum
in terms of educational standards to determine how such curriculum can be integrated with
appropriate disciplines such as math, English, economics, the sciences, etc. IEEP recommended
that DOE become the primary manager of the educational component. The OER is envisioned to
have a responsibility to provide additional expertise on renewables, energy conservation, and
efficiency opportunities and assist with curriculum development and grant evaluations. Id. at 3.
IEEP states that it will ask the National Energy Foundation to provide educational curriculum
and materials. IEEP suggested that Idaho Power provide information about its integrated electric
system and the effects and impacts of conservation and efficiency. Finally, school districts
individual schools and/or individual teachers will be provided curriculum and training.
IEEP observed that given the short time for its reply, "there is still work to be done
in developing the structure of its project. It was also noted that the proposed partners "have not
all agreed as to how this concept should be developed.Although the Commission made no
final decision in Order No. 30529, IEEP asked the Commission to continue "its tentative
ORDER NO. 30557
approval of this project contingent on the proposed partners coming to some agreement. . .. This
will give the partners time to better define (their) roles and give the project time to pull together
the curriculum. . . so that the energy education (project) could begin in the Fall of 2008.Id.
DISCUSSION AND FINDINGS
After reviewing the response, it is clear that additional work needs to be
accomplished before any energy-related educational proposal or specific projects can be
endorsed by the Commission. While the parties necessary to the accomplishment of an energy
educational effort outlined in Commission Order No. 30529 are present in the IEEP proposal, the
means of and agreements to integrating the efforts, responsibilities and potential contributions of
the individual participating parties are missing.
The Commission intends to convene a status conference in mid-July 2008 for IEEP
and other interested parties. At that time, IEEP and other interested parties shall advise the
Commission of progress in relevant communications and stipulate whether there is, or can be, a
consensus organizational structure that will support moving forward. There is no designated lead
party for the status conference. The Commission continues to reserve judgment on the
appropriate disposition of the $500 000. Idaho Power is directed to maintain this revenue in a
proper account until the Commission makes its final determination regarding the funding of the
educational proposal. The Commission will close this docket and initiate a new docket regarding
an energy education proposal. The new case shall be designated as Case No. IPC-08-l1.
ORDER
IT IS HEREBY ORDERED that the Commission will convene a status conference in
approximately six weeks to allow IEEP and other interested parties to advise the Commission on
their respective positions.
IT IS FURTHER ORDERED that the Commission continues to reserve judgment on
the appropriateness of using $500 000 of the S02 proceeds for energy education purposes in
schools served by Idaho Power Company. Pending the Commission s final judgment on this
matter, Idaho Power is directed to continue to hold the $500 000 in an appropriate account that
accrues interest.
ORDER NO. 30557
IT IS FURTHER ORDERED that this docket be closed and a new docket, Case No.
IPC-08-, be opened to address communication and coordination issues identified in this
Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. IPC-07-
may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this case. Within seven (7) days after any person has petitioned for reconsideration, any other
person may cross-petition for reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3O+J...
day of May 2008.
\u~~
MACK A. RroFORD, PRESID NT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
bls/O:IPC-07-18 dh4
ORDER NO. 30557