20090218Stipulation.pdf

BARTON L. KLINE, ISB #1526
LISA D. NORDSTROM, ISB #5733
DONOVAN E. WALKER, ISB #5921
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
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Inordstrom~idahopower.com
dwalker~idahopower.com
WELDON STUTZMAN, ISB #3283
NEIL PRICE, ISB #6864
Deputy Attorneys General
Idaho Public Utilities Commission
472 West Washington
P.O. Box 83720
Boise, Idaho 83720-007 4 c ""
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Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MAnER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO.IPC-E-08-10
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC ) STIPULATIONSERVICE. )
)
This Stipulation ("Stipulation") is entered into by and among Idaho Power
Company ("Idaho Power") and the Staff of the Idaho Public Utilities Commission
("Staff'). These entities are collectively referred to as the "Parties."
I. BACKGROUND
1. In testimony 1 spread throughout the technical hearing record on
December 16-19, 2008, Idaho Power requested the Commission explicitly find that its
expenditures funded by 2002-2007 Energy Effciency Rider ("Rider") amounts were
1 See hearing testimony of Company witnesses John R. Gale and Theresa Drake.
STIPULATION -1
prudent. The Commission Staff presented testimonl recommending that the
Commission defer a determination of the prudency of Idaho Power's Rider expenses
until the Company was able to provide a comprehensive evaluation package of its
programs and efforts. Idaho Power contended that information suffcient to make the
prudency determination existed and had been provided or made available for Staff
review.
2. On January 9, 2009, Idaho Power and the Staff filed a Joint Motion to
Defer Energy Effciency Rider Prudency Determination for funds spent between 2002-
2007 and requested the Commission issue a Final Order in Idaho Power's rate case,
Case No. IPC-E-08-10, without a prudency determination. On January 30, 2009, the
Commission granted the Joint Motion to defer a prudency determination on energy
effciency rider expenditures in rate case Order No. 30722.
II. AGREEMENT
3. A complete list of Idaho Power's 2002-2007 energy effciency programs
and associated expenses is included as Attachment No. 1 to this Stipulation. Idaho
Power and the Commission Staff have reached agreement regarding the prudency of a
portion of the $28,961,716 in Rider funds Idaho Power spent between 2002 and 2007.
More specifically, Staff and the Company agree that funds expended for the following
programs are prudent:
. Northwest Energy Effciency Allance ("NEEA")
. Custom Effciency
. Irrigation Peak Rewards
2 See hearing testimony of Staff witnesses Randy Lobb and Lyn Anderson.
STIPULATION - 2
.Energy Star(ß Homes
.Energy House Calls
.Rebate Advantage
.Local Energy Effciency Funds
.Commercial Education Initiative
.Air Care Plus Pilot
.Window Air Conditioner Trade-Up Pilot
.Distribution Effciency Initiative
.DSM Direct Program Overheads
These programs have $14,303,745 in associated rider-funded expenditures, and the
Parties agree that these expenses are prudently incurred.
4. With regard to NEEA, Idaho Power directly paid NEEA $2,160,878 out of
the Rider during the years 2005-2007. In 2003 and 2004, Idaho Power paid NEEA
$2,406,364 using revenue sharing funds pursuant to Order No. 28333. NEEA also
credited Idaho Power with previous funding cycle balances and interest in a total
amount of $1,620,796 for funds remaining from the previous funding cycle. The sum of
the NEEA-related Rider expenses, the revenue sharing expenses, and the NEEA credit
and interest is $6,188,038, and comprises Idaho's jurisdictional share of Idaho Power's
contractual commitment to NEEA. If NEEA expenses from earlier regulatory accounts
and the NEEA credit are added to the $14,303,745 in prudently incurred 2002-2007
expenditures, the total amount agreed to be prudent is $18,330,905.
5. To date, no Part has suggested that any energy effciency program or
associated expenditure made since 2002 and collected under rate Schedule 91 is
STIPULATION - 3
imprudent. The Company and Staff wil continue to exchange information and discuss
settlement with regard to the remaining $14,657,971 over the next several months.
Idaho Power wil provide Staff with an expense justification statement and associated
workpapers to enable Staff to review the remaining $14,657,971 in 2002-2007 program
expenditures that have not been resolved by this Stipulation.
6. On or before April 1, 2009, Idaho Power wil file a pleading with the
Commission seeking a prudency determination of the balance of the Rider funds spent
during 2002-2007. If resolution of the remaining 2002-2007 Rider expenditures cannot
be reached in the proceedings stemming from Idaho Power's April 1, 2009, filing, Staff
and Idaho Power wil recommend additional procedure to allow the Commission to
make such a determination.
7. The Parties agree that this Stipulation represents a settlement and
compromise of the positions of the Parties in this case. As provided in RP 272 of the
Commission's Rules of Practice and Procedure concerning settlements (IDAPA
31.01.01.272-276), other than any testimony filed in support of the approval of this
Stipulation, and except to the extent necessary for a Part to explain before the
Commission its own statements and positions with respect to the Stipulation, all
statements made and positions taken in negotiations relating to this Stipulation shall be
confidential and wil not be admissible as evidence in this or any other proceeding.
8. The Parties submit this Stipulation to the Commission and recommend its
approval, without material change or condition, in its entirety pursuant to RP 274.
Parties shall support this Stipulation before the Commission, and no Part shall appeal
a Commission Order approving the Stipulation or an issue resolved by the Stipulation.
STIPULATION - 4
If this Stipulation is challenged by any person not a part to the Stipulation, the Parties
to this Stipulation reserve the right to file testimony, cross-examine witnesses, and put
on such case as they deem appropriate to respond fully to the issues presented,
including the right to raise issues that are incorporated in the settlements embodied in
this Stipulation. Notwithstanding this reservation of rights, the Parties to this Stipulation
agree that they wil continue to support the Commission's adoption of the terms of this
Stipulation.
9. If the Commission rejects any part or all of this Stipulation, or imposes any
additional material conditions on approval of this Stipulation, each Party reserves the
right, upon written notice to the Commission and the other Parties to this proceeding,
within fourteen (14) days of the date of such action by the Commission, to withdraw
from this Stipulation. In such case, no Part shall be bound or prejudiced by the terms
of this Stipulation, and each Part shall be entitled to seek reconsideration of the
Commission's order, file testimony as it chooses, cross-examine witnesses, and do all
other things necessary to put on such case as it deems appropriate.
10. The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just, and reasonable.
11. No Party shall be bound, benefited, or prejudiced by any position asserted
in the negotiation of this Stipulation, except to the extent expressly stated herein, nor
shall this Stipulation be construed as a waiver of the rights of any Party unless such
rights are expressly waived herein. Execution of this Stipulation shall not be deemed to
constitute an acknowledgment by any Part of the validity or invalidity of any particular
method, theory, or principle of determining prudency of funds spent through the Energy
STIPULATION - 5
Efficiency Rider. No Party shall be deemed to have agreed that any method, theory, or
principle of determining prudency of energy effciency expenditures in arriving at this
Stipulation is appropriate in any other proceeding in the future. No findings of fact or
conclusions of law other than those stated herein shall be deemed to be implicit in this
Stipulation.
12. The obligations of the Parties under this Stipulation are subject to the
Commission's approval of this Stipulation in accordance with its terms and conditions
and upon such approval being upheld on appeal, if any, by a court of competent
jurisdiction.
13. This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
DATED this 18th day of February 2009.
Idaho Power Company Idaho Public Utilities Commission Staff
By ~ 1) ~dd
Lisa D. Nordstrom .
Attorney for Idaho Power Company
Byd¿~
Weldon Stutzman
Deputy Attorney General
STIPULATION - 6
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-08-10
IDAHO POWER COMPANY
ATTACHMENT NO.1
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