20090306final_order_no_30740.pdf

Office of the Secretary
Service Date
March 6, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC
SERVICE TO ITS CUSTOMERS IN THE
STATE OF IDAHO
ORDER NO. 30740
CASE NO. IPC-08-
In the Idaho Power rate Case No. IPC-08-, the Company requested a
Commission determination that its expenditures for demand-side management (DSM) programs
funded by the Energy Efficiency Rider from 2002-2007 were prudent. Staff presented testimony
recommending the Commission defer determination on the prudency of all DSM expenses.
January 9, 2009, Idaho Power and Staff filed a Joint Motion to defer Energy Efficiency Rider
Prudency Determination and requested the Commission issue a final Order in this case without
such a determination. The Commission granted the Joint Motion and issued final Order No.
30722 without reviewing Idaho Power s DSM expenditures.
On February 18, 2009, Idaho Power and Staff filed a Joint Motion for Approval of
Energy Efficiency Rider Prudency Stipulation and the Stipulation itself. The Stipulation states
that the parties have agreed that $14.3 million of nearly $29 million in Rider funds expended
during 2002-2007 were for expenses that were prudently incurred. In addition, the Stipulation
provides that an additional amount Idaho Power paid to the Northwest Energy Efficiency
Alliance (NEEA) during the period was prudently incurred, bringing total expenditures identified
as prudent to $18.3 million. Finally, the Stipulation states the Company and Staff will continue
to discuss possible settlement regarding the remaining $14.6 million of Energy Efficiency Rider
funds. By Aprill , 2009, Idaho Power will file a new case seeking a prudency determination of
the balance of the Rider funds spent during 2002-2007. The Joint Motion requests and
recommends the Commission approve the Stipulation regarding the prudency of a portion of the
Energy Efficiency Rider funds used during 2002-2007.
When a stipulation is presented to the Commission, it will independently review it
to determine whether the settlement is just, fair and reasonable, in the public interest, or
otherwise in accordance with law or regulatory policy." IPUC Rule of Procedure 276; IDAP A
ORDER NO. 30740
31.01.01.276. The Commission may accept the settlement, reject the settlement, or state
additional conditions under which the settlement will be accepted. Id.
Although review of Idaho Power s DSM expenditures for 2002-2007 was part of this
rate case, approval of the energy efficiency expenditures as identified in the Stipulation will not
affect the Company s rates. We note that no other party in the rate case prepared testimony
regarding the prudency of these past expenditures, nor did any party object or comment on the
Joint Motion and Stipulation filed by Staff and the Company. A determination that these past
expenditures by Idaho Power during 2002-2007 were prudent only precludes any further dispute
regarding these particular expenses.
The Commission finds the Stipulation identifying approximately $18.3 million in
energy efficiency expenditures for 2002-2007 as prudent to be just, reasonable and in the public
interest. Attachment 1 to the Stipulation identifies the DSM programs and energy efficiency
expenditures during this period, and identifies the programs and expenditures the Staff and
Company agreed were prudently incurred. This document is also Attachment 1 to this Order.
ORDER
IT IS HEREBY ORDERED that the Stipulation regarding the prudency of certain
Energy Efficiency Rider expenditures during 2002-2007 is approved. By approving the
Stipulation, the Commission finds that approximately $18.3 million of energy efficiency
expenditures during 2002-2007, as set forth in the Stipulation, were prudently incurred.
THIS IS A FINAL ORDER ON IDAHO POWER'S DSM PROGRAM
EXPENDITURES FOR 2002-2007. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. 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.
ORDER NO. 30740
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
-rA
day of March 2009.
MACK A. REDFORD, PRESIDENT
~A J~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~...JJ.
D. Jewell
mISSIOn Secretary
bls/O:IPC-08-10 ws3
ORDER NO. 30740
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