20080725Initial Report.pdf

eslDA~POR~
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An IDACORP Company
LISA D. NORDSTROM
Attorney II
July 24, 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-08-14
S02 Emission Allowances in 2008
Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of Idaho Power
Company's Initial Report of Proceeds From Sales of S02 Emission Allowances in 2008 in
the above-referenced matter.
I would appreciate it if you would return a stamped copy of this transmittal letter
to me in the enclosed self-addressed stamped envelope.
Very truly yours,otukl)íl~
Lisa D. Nordstrom .
LDN:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
LISA D. NORDSTROM, ISB # 5733
BARTON L. KLINE, ISB # 1526
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
Inordstrom~idahopower.com
bkline~idahopower.com
57
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 MAnER OF THE
APPROPIRA TE DISPOSITION OF
PROCEEDS FOR THE SALE OF IDAHO
POWER COMPANY'S S02 EMISSION
ALLOWANCES IN CALENDAR YEAR
2008
)
) CASE NO. IPC-E-08-14
)
) IDAHO POWER COMPANY'S INITIAL
) REPORT OF PROCEEDS FROM
) SALES OF S02 EMISSION
) ALLOWANCES IN 2008
1. In 2005, in Order No. 29852 issued in Case No. IPC-E-05-20, the
Commission granted Idaho Power Company ("Idaho Powet' or "the Company") blanket
authority to sell surplus sulfur dioxide ("S02") emission allowances.
2. 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.
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2008 - 1
3. In Order No. 29852, the Company was also directed to file a report with
the Commission within sixt (60) days of the receipt of any proceeds form the sale of
surplus sulfur dioxide emission allowances.
4. During 2008, conditions in the emission allowances market were such that
Idaho Power sold surplus sulfur dioxide emission allowances. Thus far in 2008, the
Company has either sold and received payment for, or entered into contracts for, the
sale of a total of 10,000 surplus sulfur dioxide emission allowances. The total
anticipated net proceeds, after deducting brokerage fees of $2,500, is $2,958,500.
5. In Order No. 30041, issued in Case No. IPC-E-05-26, the Commission
approved a sharing arrangement in which 90 percent of the state of Idaho's
jurisdictional share of the net sale proceeds, including tax effects, was allocated to
customers and the remaining 10 percent 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. In April 2008, the Commission approved similar treatment for 2007 proceeds in
Order No. 30529 (Case No. IPC-E-07-28) but reserved judgment on the use of
$500,000 for energy education.
6. Idaho Power proposes that the same 90/10 percent sharing of benefits be
utilized to allocate the proceeds from sales of surplus sulfur dioxide emission
allowances made in 2008. In this pleading, Idaho Power provides the Commission
notice of (1) the amounts of proceeds to be received so far and (2) that the Company
intends to use the same interim accounting for proceeds that the Commission approved
in 2005.
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2008 - 2
7. 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
of surplus sulfur dioxide emission allowances made thus far in 2008 as follows:
(1 )
To record the sale of emission allowances and establish a reserve for the Idaho
. and Oregon portions in account 454 with the FERC portion recognized immediately in
account 411.8.
143 Other Accounts Receivable
699 X00001 999 143900 $XX.XX
254 Other Regulatory Liabilities
699 X00001 999254409 $XX.XX
411.8 Gains from Disposition of Allowances
699 X00001 999411804 $XX.XX
(2)
To record the receipt of cash from the sale of emission allowances.
131 Cash
143 Other Accounts Receivable
699 X00001 999143900
$XX.XX
$XXX.XX
(3)
To record Idaho Power's 10 percent share of the net proceeds from the sale of
emission allowances.
254 Other Regulatory Liabilities
699 X0001 999254409 $XX.XX
411800 Gains From Disposition of Allowance699 X0001 999 411804 $XX.XX
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2008 - 3
8. This initial report covers surplus sulfur dioxide emission allowance sales
during 2008 as of the date of this filing. Proceeds received after the date of this filing
wil be included in a subsequent report.
Respectfully submitted this 21~ay of July 2008.
~£.~íš. NORDS~
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2008 - 4