20080905Motion for Acceptance.pdf

?,IDA~POR~
An IDACORP Company
LISA D. NORDSTROM
Senior Counsel
September 5, 2008
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-08-06
IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY
FOR AUTHORITY TO INSTITUTE REVISED DEPRECIATION RATES FOR
ELECTRIC PLANT IN SERVICE
Dear Ms. Jewell:
Enclosed for filing are an original and seven (7) copies each of the Company's
Motion for Acceptance of Settlement and the Stipulation executed by the Parties.
Also, 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,
~f)7Lø4~
Lisa D. Nordstrom
LDN:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. 10 83702
LISA D. NORDSTROM, ISB #5733
BARTON L. KLINE, ISB #1526
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
Inordstrom(âidahopower.com
bkline(âidahopower.com
REceIVED
2888 SEP -5 PM 3: , I
IDAHO PUBLlC
UTILITIES COMMISSION
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER AUTHORIZING A CHANGE IN
DEPRECIATION RATES APPLICABLE TO
ELECTRIC PROPERTY
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CASE NO. IPC-E-08-06
MOTION FOR ACCEPTANCE
OF SETTLEMENT
COME NOW, Idaho Power Company ("Idaho Powet' or "Company") and the
Staff of the Idaho Public Utilities Commission ("Staff'), both of whom are hereinafter
collectively referred to as the "Parties," and, in accordance with Idaho Code § 61-525,
RP 056, and RP 274-276, hereby move the Commission for an Order accepting the
settlement negotiated by the Parties as embodied in the Stipulation filed
contemporaneously with this Motion. This Motion is based on the following:
MOTION FOR ACCEPTANCE OF SETILEMENT - 1
I. APPLICATION AND PROCEDURAL HISTORY
On April 1, 2008, Idaho Power filed an Application with the Idaho Public Utilities
Commission ("I PUC" or the "Commission") requesting authority to institute revised
depreciation rates for the Company's electric plant in service ("Application"). No major
changes have been made to the Company's depreciation rates in the last five years.
The Company's depreciation rates last changed in December 2003 when the
Commission issued Order No. 29363 in Case No. IPC-E-03-07. In its April 1, 2008,
filing, the Company sought an accounting order approving revised depreciation rates
that the Company would prospectively apply to its depreciable plant in service. The
Company did not request to change its electric rates with the Application.
The proposed depreciation rates included in the Company's Application were
based upon the results of a detailed depreciation study of the Company's electric plant
in service as of December 31, 2006. On the basis of $3,467,925,739 of depreciable
plant in service on December 31, 2006, and using the average service life procedure,
Idaho Power requested depreciation changes in its Application that would have
decreased the Company's total annual depreciation expense by $6,713,451.
Following the Commission's April 17, 2008, Notice of Application and Intervention
Deadline (Order No. 30532), no petitions to intervene were filed. Analysis by the Staff
evaluated Idaho Power's proposed depreciation rates with those used in the industry by
similar companies. After a series of settlement discussions, on August 27, 2008, the
Parties agreed to several adjustments to the Company's proposed depreciation
expenses for certain accounts associated with steam production plant (Bridger),
hydraulic production plant (Thousand Springs and Clear Lake), other production plant
MOTION FOR ACCEPTANCE OF SETILEMENT - 2
(Salmon diesel generator), and transmission poles and fixtures. Staff accepted the
depreciation accruals originally proposed by the Company in its Application for its other
plant categories.
The changes agreed to by the Parties result in an overall reduction in the
requested depreciation expense from about $89.3 millon to $87.5 milion. The Parties'
settlement of this matter is embodied in the Stipulation filed contemporaneously with
this Motion.
II.
The Parties agree that the Stipulation is in the public interest and that all of the
terms of the Stipulation are fair, just, and reasonable. The Parties support adoption of
the Stipulation and acceptance of the Stipulation by the Commission as a resolution of
all the outstanding issues.
II.
The Parties negotiated the Stipulation as an integrated settlement document.
The Parties to this case are signatories to the Stipulation. The Parties request that the
Stipulation wil be entered into the record as evidence in this proceeding. As a result, in
accordance with RP 274, the Parties respectfully submit that an evidentiary hearing is
not required.
NOW, THEREFORE, Idaho Power Company, on behalf of itself and of the
Parties, requests the Commission issue its Order (1) accepting the Stipulation in
settlement of all of the remaining issues in the case and (2) authorizing the agreed upon
depreciation rates tobecorre effective August 1,2008.
MOTION FOR ACCEPTANCE OF SETILEMENT - 3
Respectfully submitted this
¿~
~ day of September 2008.
fi~ 1) ~ErLSANORDšT~
Attorney for Idaho Power Company
MOTION FOR ACCEPTANCE OF SETILEMENT - 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the ~ day of September 2008 I served a true
and correct copy of the MOTION FOR ACCEPTANCE OF SETTLEMENT upon the
following named individuals by the method indicated below, and addressed to the
following:
Weldon B. Stutzman
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
-. Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-X Email Weldon.stutzman(ãpuc.idaho.gov
tL.i*~~ LISA ~NÕRDSTROM
MOTION FOR ACCEPTANCE OF SETTLEMENT - 5