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HomeMy WebLinkAbout20090316Sparks Direct.pdfRECE r; 2009 MAR '3 PM 4: 06 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO IMPLEMENT FIXED COST ADJUSTMENT ("FCA") RATES FOR ELECTRIC SERVICE FROM JUE 1, 2009, THROUGH MAY 31, 2010. CASE NO. IPC-E-09-06 IDAHO POWER COMPANY DIRECT TESTIMONY OF SCOTT D SPARKS 1 Q.Please state your name and business address. 2 A.My name is Scott D. Sparks and my business 3 address is 1221 West Idaho Street, Boise, Idaho. 4 Q.By whom are you employed and in what 5 capacity? 6 A.I am employed by Idaho Power Company as a 7 Senior Pricing Analyst in the Pricing and Regulatory 8 Services Department. 9 Q.Please describe your educational background. 10 A.In May of 1989, I received a Bachelor of 11 Business Administration degree in Business Management from 12 Boise State University. 13 Q.Please describe your work experience with 14 Idaho Power Company. 15 A.I became employed by Idaho Power Company in 16 1985 as a part-time mail clerk and have held positions as 17 Meter Reader, Customer Service Representative, Economic 18 Analyst, Human Resource/Compensation Analyst, Pricing and 19 Regulatory Services Analyst, and Resource Planning Analyst. 20 In January of 1991, after two years in the Customer 21 Service Department, I was offered and I accepted a position 22 in the Company's Energy Services Department. My 23 responsibilities over six years in the department varied 24 from conservation program evaluation, special studies, and SPARKS, DI 1 Idaho Power Company 1 load forecasting and research. In 1995, I was asked to 2 temporarily transfer to the Human Resources Department to 3 assist with implementation of the Company's reorganization, 4 benefit, and compensation plans. 5 In 1998, I applied for and accepted a position in 6 the Pricing and Regulatory Services Department where I was 7 responsible for reviving the Company's resource planning 8 and integrated resource planning processes. As part of 9 reorganization, I was reassigned to the Power Supply 10 Planning Department in 2001 where I acted as the lead 11 analyst for the Integrated Resource Plan. In July 2003, I 12 left the Company to pursue self-emploYment in the real 13 estate and construction sectors. I returned to the Company 14 as a Senior Pricing Analyst in the Pricing and Regulatory 15 Services Department in June 2008. 16 Q.What is the purpose of your testimony? 17 A.The purpose of my testimony is to describe 18 the Company's request for its annual Fixed Cost Adjustment 19 ("FCA") per Order No. 30267 in Case No. IPC-E-04-15. 20 Specifically, my testimony will discuss four areas related 21 to the FCA pilot program. First, I will briefly discuss 22 the FCA mechanism itself and how a Fixed Cost Adjustment is 23 determined. Second, I will briefly discuss the 2008 24 demand-side management activities during the second year of SPARKS, DI 2 Idaho Power Company 1 implementation of the FCA pilot program. Third, I will 2 discuss the results from the second year of the FCA pilot 3 and, fourth, I will discuss the calculation of the FCA rate 4 the Company is proposing to go into effect on June 1, 2009. 5 FIXED COST ADJUSTMNT MECHAISM 6 Q.What is the purpose of a Fixed Cost 7 Adjustment true-up mechanism? 8 A.The FCA is a true-up mechanism that 9 "decouples," or separates, energy sales from revenue in 10 order to remove the financial disincentive that exists when 11 the Company invests in demand-side management ("DSM") 12 resources. Under the FCA, rates for Residential Service 13 (Schedule 1, Schedule 4, and Schedule 5) and Smal 1 General 14 Service (Schedule 7) customers are adjusted annually up or 15 down to recover or refund the difference between the fixed 16 costs authorized by the Commission in the Company's most 17 recent general rate case and the fixed costs that the 18 Company actually received through energy sales during the 19 previous year. Through the application of this true-up 20 mechanism, the Company is not financially harmed by 21 decreases in energy sales within the Residential and Small 22 General Service customer classes. 23 Q.Please describe the Fixed Cost Adjustment 24 mechanism. SPARKS, DI 3 Idaho Power Company 1 A.For both the Residential and Small General 2 Service classes, the FCA mechanism is the same. The 3 formula used to determine the FCA amount is: 4 FCA = (CUST X FCC) - (NORM X FCE) 5 Where: 6 FCA = Fixed Cost Adjustment; 7 CUST = Average number of customers, by class; 8 FCC = Fixed Cost per Customer rate, by class; 9 NORM = Weather-normalized energy, by class; 10 FCE = Fixed Cost per Energy rate, by class. 11 Q.How is the FCA true-up amount determined? 12 A.The FCA true-up is the difference between 13 the Company's "allowed fixed cost recovery" (CUST X FCC) 14 and the "actual fixed cost recovery" (NORM X FCE). The 15 "allowed fixed cost recovery" is determined by multiplying 16 the average number of customers for the year times the 17 fixed cost per customer ("FCC") rate established as a 18 result of the outcome in the Company's general rate case. 19 The "actual fixed cost recovery" is determined by 20 multiplying the weather-normalized energy sales for the 21 year times the fixed cost per energy ("FCE") rate. The FCE 22 rate is also established in the Company's general rate 23 case. SPARKS, DI 4 Idaho Power Company 1 Q.Can the FCA true-up amount be either 2 positive or negative? 3 A.Yes. The FCA can be either posi ti ve or 4 negative. If the adjustment amount were positive, that 5 would indicate the Company's allowed fixed cost recovery 6 amount was greater than the fixed costs actually recovered 7 through the energy rate for that class of customers. This 8 would stem from the fact that the growth rate in weather- 9 normalized energy was less than the growth rate in 10 customers; i. e., the use per customer had decreased. The 11 effect would be that the Company had under-collected its 12 fixed costs and therefore additional dollars need to be 13 collected from the customer class in order to make the 14 Company financially whole. In a similar fashion, if the 15 FCA were negative, that would indicate that the Company's 16 allowed fixed cost recovery amount was less than the fixed 17 costs actually recovered through the class energy rate and 18 would result in a refund of the adjustment amount to that 19 customer class. 20 Q.What were the FCA adjustments for the 21 Residential and Small General Service classes in 2008 in 22 Case No. IPC-E-08-04. 23 A.The FCA for the Residential class was a 24 negative $3,587,591.70 and the adjustment for Small General SPARKS, DI 5 Idaho Power Company 1 Service was a positive $1,187,033.97. In Order No. 30556, 2 the Commission ordered that the overall credit balance 3 ($2,400,557) be distributed equally to both the Residential 4 and Small General Service customer classes. The resulting 5 rate reduction was 0.0457 cents per kWh for these 6 customers. 7 DEM-SIDE ~AGEMNT ACTIVITIES 8 Q.Please describe the Company's enhanced 9 efforts toward promoting demand-side management activities 10 through energy efficiency and demand response programs in 11 2008. 12 A.Throughout 2008, the Company actively 13 pursued numerous, additional opportunities to promote 14 demand-side management. Some of the key areas where the 15 Company enhanced its effort include:(1) energy 16 efficiency, (2) demand response, (3) market transformation, 17 (4) other programs and initiatives, and (5) new electric 18 rate designs. 19 In total, the Company substantially increased its 20 spending in energy efficiency and demand response programs. 21 Demand-side management expenses were slightly under $21 22 million in 2008, which is a 35 percent increase over 2007 23 expenditures of $15.7 million. The energy savings for the 24 Company's energy efficiency programs in 2008 was 107,484 SPARKS, DI 6 Idaho Power Company 1 megawatt hours, a 72 percent increase over the energy 2 savings in 2007. In 2008, the Company's energy efficiency 3 programs continued to increase in number and customer 4 participation. Idaho Power Company offered 13 energy 5 efficiency programs, two demand response programs, and 6 added three new programs:(1) the Home Products program, 7 (2) the Home Weatherization pilot, and (3) the Attic 8 Insulation pilot. Additional significant energy savings 9 continued to be realized through market transformation 10 partnership activities with the Northwest Energy Efficiency 11 Alliance ("NEEA"). 12 A complete description of all energy efficiency 13 activities can be found in the Company's 2008 Demand-Side 14 Management Annual Report currently filed with the 15 Commission. 16 Q.What other initiatives did the Company 17 pursue in encouraging energy efficiency? 18 A.In the Company's last general rate case, 19 Case No. IPC-E-08-10, several new price-based rate designs 20 were approved in support of the Company's objective of 21 encouraging the wise and efficient use of electricity. 22 Year-round tiered blocks, expanded time-of -use pricing, and 23 the introduction of load-factor pricing were all efforts SPARKS, DI 7 Idaho Power Company 1 toward encouraging the efficient use of electricity. These 2 new rates designs went into effect February 1, 2009. 3 SECOND YEA FCA PILOT 4 Q.Did the Company use the same FCC and FCE 5 monthly rates for reporting purposes throughout the second 6 year of the pilot? 7 A.No. As stated above, the FCA mechanism is 8 intended to recover the difference between the fixed costs 9 authorized by the Commission in the Company's most recent 10 general rate case and the fixed costs actually recovered 11 through rates. If energy rates change during the year, the 12 relationship between allowed and actual fixed costs needs 13 to be adjusted. 14 Q.Were there changes in fixed cost recovery 15 during 2008? 16 A.Yes. Case No. IPC-E-07-08 changed the 17 Company's base rates in March 2008, which required an 18 update to both the FCC and FCE. As a result, the Company 19 used FCC and FCE rates for the months of January and 20 February that were based upon the revenue requirement 21 established in Case No. IPC-E-OS-28. The new FCC and FCE 22 rates that were used for the months of March through 23 December 2008 are consistent with the revenue requirement 24 established in Case No. IPC-E- 07 - 08. SPARKS, DI 8 Idaho Power Company 1 Q.Please describe the monthly FCC rates used 2 for reporting purposes during the second year of the pilot 3 (2008) . 4 A.Exhibit No. 1 shows the monthly FCC rates 5 that were used for January and February reporting purposes 6 in 2008. For the Residential class, the monthly FCC rate 7 was $32.98 and for Small General Service the rate was 8 $24.49. These were established through the fixed costs 9 indentified in Case No. IPC-E-OS-28. Exhibit No. 2 shows 10 the FCC rates used for March through December month-to- 11 month reporting in 2008. For the Residential class, the 12 monthly FCC rate for March through December was $35.74 per 13 customer and for the Small General Service class the 14 monthly FCC was $24.57. 15 Q.Please describe the monthly FCE rates used 16 for reporting purposes during the second year of the pilot 17 (2008) . 18 A.Exhibi t No. 1 details the Residential and 19 Small General Service monthly "shaped" FCE rates that were 20 used for January and February monthly reporting purposes . 21 The rates used for Residential were $0.022760 and 22 $0.025017 , respectively, for January and February while the 23 Small General Service rates were $0.034067 and $0.035986, 24 respectively. Exhibit No. 2 details the monthly "shaped" SPARKS, DI 9 Idaho Power Company 1 FCE rates used for March through December for both customer 2 classes. 3 Q.Why are "shaped" FCE rates used for 4 reporting purposes? 5 A.The FCE rates are shaped to better match 6 cause and effect for accounting purposes so that the 7 Company can adhere to generally accepted accounting 8 principles ("GAAP") and better estimate the financial 9 impacts of the FCA calculation at year-end. The ultimate 10 FCA adjustment is determined annually, but is booked to 11 Company accounts on a monthly basis. This is similar to 12 Power Cost Adjustment ("PCA") accounting practices. 13 Q.Has the Company been periodically reporting 14 the balance of the FCA true-up account to the Commission? 15 A.Yes. As part of the Stipulation to Case No. 16 IPC-E-04-1S, Order No. 30267, the Company agreed to record 17 the FCA deferral as a separate line item in the monthly PCA 18 report provided to the Commission. The Company continued 19 to report the monthly balance of the FCA in 2008; however, 20 the true-up account balance was reported in a separate 21 report detailing the FCA only. Exhibit No.3 is a copy of 22 the FCA Report for 2008. The total FCA combined adjustment 23 balance of a positive $2,721,218.65 can be seen on line 32, 24 column S of Exhibit No.3. SPARKS, DI 10 Idaho Power Company 1 Q.What are the FCA true-up amounts for the 2 calendar year 2008 for both the Residential and Small 3 General Service classes? 4 A.Exhibit No. 3 shows the derivation of the 5 positive $2,721,218.65. This amount includes a positive 6 $1,385,482.32 (line 15, column S) as the accumulated 7 balance for the Residential FCA and a positive 8 $1,335,736.33 (line 29, column S) for the accumulated 9 balance for the Small General Service FCA. Both amounts 10 include interest through December 2008. 11 Q.Were any adj ustments made to these amounts 12 once the Company's books were closed at year-end? 13 A.Yes. Once the Company's books were closed 14 at year-end, the average prorated customer count and annual 15 weather normalized energy sales were determined. Once 16 these were determined, the "allowed fixed cost recovery" 17 (average prorated customer count X FCC) and the "actual 18 fixed cost recovered" (annual weather normalized energy 19 sales X FCE) could be calculated. The difference between 20 this year-end determination of the FCA balances and the sum 21 of the twelve monthly reported estimates of the FCA 22 balances required adjustments to the FCA deferral account. 23 Q.What were the adjustments made to the 24 Residential and Small General Service FCA balances? SPARKS, DI 11 Idaho Power Company 1 A.In February 2009, the Company booked the 2 adjustments to the Residential and Small General Service 3 FCA balances. For the Residential class, an adjustment of 4 a negative $75,910.55 was made (Exhibit No.4, line 6, 5 column T) resulting in a total accrual of positive 6 $1,310,900.87, not including interest. For the Small 7 General Service class, a positive $47,313.19 (Exhibit No. 8 4, line 20, column T) adjustment was made resulting in a 9 total deferral of $1,352,965.47, not including interest. 10 Q.What is the total amount of the Fixed Cost 11 Adjustment, including interest, the Company is requesting 12 to implement in rates on June 1, 2009? 13 A.Exhibi t No. 4 shows the FCA balances and 14 adjustments, plus interest calculated through May 2009. 15 The total amount of the fixed cost adjustment the Company 16 is requesting to implement in rates on June 1, 2009, is an 17 increase of $2,714,915.48 reflected on line 32, column X. 18 The FCA for the Residential class shows an increase of 19 $1,320,748.96 reflected on line 15, column X. For the 20 Small General Service class, an additional $1,394,166.52 21 will need to be recovered as part of the FCA true-up 22 mechanism. This amount is reflected on line 29, column X. 23 Q. What is the significance of these numbers 24 with respect to the Company's recovery of its fixed costs? SPARKS, DI 12 Idaho Power Company 1 A.Since the residential true-up is a positive 2 number, it means that the rate of growth in the number of 3 residential customers was more than the rate of growth in 4 the energy sales for that class; i. e., the average use per 5 customer decreased. Therefore, the Residential class will 6 receive an increase to recover the additional fixed costs 7 not collected during the year. The same holds true for the 8 Small General Service class meaning that the use per 9 customer for this class has decreased and the Company has 10 under-collected its fixed costs. 11 CACULTION OF 2009-2010 FCA RATES 12 Q.Please describe the calculation of the Fixed 13 Cost Adjustment rate the Company is proposing to go into 14 effect on June 1, 2009. 15 A.The FCA rate the Company proposes to go into 16 effect on June 1, 2009, is calculated by taking the FCA 17 true-up balances described above and dividing by the 2008 18 weather normalized load by class, as defined by FCA 19 methodology. 20 Q.What has the Company determined the 2008 21 weather normalized load to be for both the Residential and 22 Small General Service classes? 23 A.The Company's weather normalized sales for 24 2008 was 4,961,893,208 kWh and 170,004,623 kWh for the SPARKS, DI 13 Idaho Power Company 1 Residential and Small General Service classes, 2 respectively. 3 Q.What is the FCA the Company proposes to 4 place into effect on June 1, 2009, for the Residential 5 class? 6 A.The residential FCA would be an adder to the 7 Residential class of $1,320,748.96. This would mean a rate 8 adder of 0.0266 cents per kWh ($1,320,748.96 X 100 / 9 4,961,893,208 kWh). This represents a 0.42 percent 10 increase in residential rates. 11 Q.What is the total FCA determination for the 12 Small General Service class? 13 A.The Small General Service FCA requires an 14 additional recovery of fixed costs in the amount of 15 $1,394,166.52. This would mean a rate adder for the Small 16 General Service class of 0.8200 cents per kWh 17 ($1,394,166.52 X 100 / 170,004,623 kWh). This represents a 18 10.29 percent increase in the Small General Service rates. 19 Q.Are these the Residential and Small General 20 Service FCA rate increases the Company is proposing to 21 implement June 1, 2009, through May 31, 2010? 22 A.No. To be consistent with the methodology 23 applied in the first year of the FCA pilot, Case No. IPC-E- 24 08-04, Order No. 30556, the Company is proposing a combined SPARKS, DI 14 Idaho Power Company 1 rate increase for Residential and Small General Service 2 customers of 0.0529 cents per kWh or 0.82 percent. 3 Q.The Stipulation specified that the FCA rate 4 component should be combined with the Conservation Program 5 Funding Charge, now the Energy Efficiency Services Charge, 6 for purposes of customer bill presentation. How will the 7 Company conform to the Stipulation's specifications? 8 A.The Company will include the combined FCA 9 rate adjustment with the Energy Efficiency Services Charge 10 on Residential and Small General Service customer's bills. 11 Q.Does this complete your testimony? 12 A.Yes. SPARKS, DI 15 Idaho Power Company BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-09-06 IDAHO POWER COMPANY SPARKS, 01 TESTIMONY EXHIBIT NO.1 'i .e Q) IIEO en E toft eno COo~òo ftC"_ en 'i 4l Et/ co~ toIl 0)- C? ~z w.. : 0.2 :E e: ~ o S:eo " 0 Q) c.a: = ~ ~ m :: o :Š a. -; co ~~J: W .. c: ~ .2 c oa i- 0 IIo :Ji. _ cocø N:w ut NCliO Q) .. CO:2 ~cñII N IIQ) "I C"~..4l ~ ~ofJ Q)~ ~ l! o Ë " .s= II.- =i.o" ..Q) 0N .¡: to .Q :5 E= =c( Z _ CO..(JO..COCOCONCO..COCO ! ~~-~-~-~-~-~-~-~-~-~-~-~-~o ;:cocococococococococococoo " 0 10 10 10 10 10 10 10 10 10 10 10 10 CO Q) fJ I' I' I' I' I' I' I' I' I' I' I' I' 0.~ Q) ~~~~4l~~~~~~~cñi. ~ 4l 'i .e Q) E Eoo 'i Et/ I' co (' 0 CO N 10 CO CO (J .. 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IPC-E-09-06 IDAHO POWER COMPANY SPARKS, 01 TESTIMONY EXHIBIT NO.3 A B C D E G H I K L M 0 P Q S 1 Fi x e d C o s t A d j u s t m e n t Ja n u a r v Fe b r u a r v Ma r c h Ao r i l Ma v Ju n e Ji . Au a u s t Se p t e m b e r OC o b e r No v e m b e r De c e m b e r To t a l s 2 fo r t h e y e a r e n d e d D e c m b e r 3 1 , 2 0 0 8 3 4 R e s i d e n t i a l F C A : 5 B e g i n n i n g B a l a n c e $ 0.0 0 42 1 , 7 7 6 . 5 5 1,0 2 8 , 5 6 9 . 3 4 19 9 4 , 1 0 2 . 9 9 18 3 3 , 7 9 1 . 0 8 98 2 7 1 4 . 8 7 17 8 9 , 3 9 4 . 7 0 33 9 , 7 2 2 . 8 7 80 3 , 5 6 7 . 1 1 92 6 , 0 3 3 . 8 1 1, 2 8 5 , 6 5 0 . 4 7 1, 3 7 6 , 3 9 1 . 6 4 6 A m o u n t D e f e r r e d $ 42 1 , 7 7 6 . 5 5 60 6 7 9 2 . 7 9 34 , 4 6 6 . 3 5 16 0 , 3 1 1 . 9 1 11 4 8 , 9 2 3 . 7 9 19 3 3 2 0 . 1 7 1, 1 2 9 , 1 1 7 . 5 7 46 3 8 4 4 . 2 4 12 2 4 6 6 . 7 0 35 9 , 6 1 6 . 6 6 90 , 7 4 1 . 1 7 10 4 1 9 . 7 8 1 3 8 6 , 8 1 1 . 4 2 7 E n d i n a B a l a n c e $ 42 1 , 7 7 6 . 5 5 1, 0 2 8 , 5 6 9 . 3 4 (9 9 4 , 1 0 2 . 9 9 18 3 3 , 7 9 1 . 0 8 19 8 2 , 7 1 4 . 8 7 78 9 , 3 9 4 . 7 0 33 9 , 7 2 2 . 8 7 80 3 , 5 6 7 . 1 1 92 6 , 0 3 3 . 8 1 1,2 8 5 , 6 5 0 . 4 7 1, 3 7 6 , 3 9 1 . 6 4 1, 3 8 6 , 8 1 1 . 4 2 8 9 I n t e r e s t : 10 A c c a l t h r u P r i o r M o n t h $ 0. 0 0 0. 0 0 1, 7 5 7 . 4 0 16 , 0 4 3 . 1 1 10 , 1 8 5 . 2 1 13 , 6 5 9 . 3 4 17 , 7 5 3 . 9 9 12 1 , 0 4 3 . 1 3 19 , 6 2 7 . 6 2 16 , 2 7 9 . 4 2 12 , 4 2 0 . 9 5 (7 , 0 6 . 0 7 11 M o n t h l y I n t e r e s t R a t e 5. 0 % 5. 0 % 5.0 % 5.0 % 5.0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5.0 % 5.0 % 5.0 % 12 M o n t h l Y I n t e r e s t I n e l E x p ) $ 0. 0 0 1,7 5 7 . 4 0 4,2 8 5 . 7 1 14 1 4 2 . 1 0 13 4 7 4 . 1 3 14 , 0 9 4 . 6 5 32 8 9 . 1 4 14 1 5 . 5 1 3, 3 4 8 . 2 0 38 5 8 . 4 7 5,3 5 6 . 8 8 57 3 4 . 9 7 1,3 2 9 . 1 0 13 I n t e r e s t A c c r u e d t o d a t e $ 0. 0 0 1,7 5 7 . 4 0 6,0 4 3 . 1 1 10 , 1 8 5 . 2 1 13 , 6 5 9 . 3 4 17 , 7 5 3 . 9 9 21 , 0 4 3 . 1 3 (1 9 , 6 2 7 . 6 2 16 , 2 7 9 . 4 2 12 , 4 2 0 . 9 5 7,0 6 4 . 0 7 1, 3 2 9 . 1 0 14 15 To t a l R e s i d e n t i a l F C A : 42 1 , 7 7 6 . 5 5 1, 0 3 0 3 2 6 . 7 4 10 0 0 1 4 6 . 1 0 84 3 9 7 6 . 2 9 99 6 , 3 7 4 . 2 1 80 7 1 4 8 . 6 9 31 8 6 7 9 . 7 4 78 3 , 9 3 9 . 4 9 90 9 7 5 4 . 3 9 1,2 7 3 2 2 9 . 5 2 13 6 9 3 2 7 . 5 7 1, 3 8 5 , 4 8 2 . 3 2 1 3 8 5 , 4 8 2 . 3 2 16 17 18 Sm a l l C o m m e r l c a l F C A : 19 Be g i n n i n g B a l a n c e $ 0. 0 0 95 , 7 9 0 . 9 7 19 8 , 5 0 4 . 8 2 33 4 , 4 2 0 . 9 8 43 2 , 7 6 5 . 8 4 53 6 , 6 6 5 . 0 2 61 8 , 4 8 5 . 2 1 77 5 , 4 1 5 . 9 3 91 1 , 9 4 9 . 8 6 1,0 0 9 , 9 0 2 . 7 8 1,1 0 4 , 3 9 3 . 2 7 1,2 0 1 , 8 8 0 . 3 3 20 Am o u n t D e f e r r e d $ 95 , 7 9 0 . 9 7 10 2 7 1 3 . 8 5 13 5 , 9 1 6 . 1 6 98 , 3 4 4 . 6 6 10 3 8 9 9 . 3 8 81 8 2 0 . 1 9 15 6 , 9 3 0 . 7 2 13 6 5 3 3 . 9 3 97 , 9 5 2 . 9 2 94 , 4 9 0 . 4 9 97 4 8 7 . 0 6 10 3 7 7 1 . 9 5 13 0 5 6 5 2 . 2 8 21 En d i n a B a l a n c e $ 95 , 7 9 0 . 9 7 19 8 , 5 0 4 . 8 2 33 4 , 4 2 0 . 9 8 43 2 , 7 6 5 . 8 4 53 6 , 6 6 5 . 0 2 61 8 , 4 8 5 . 2 1 77 5 , 4 1 5 . 9 3 91 1 , 9 4 9 . 8 6 1, 0 0 9 , 9 0 2 . 7 8 1,1 0 4 , 3 9 3 . 2 7 1,2 0 1 , 8 8 0 . 3 3 1,3 0 5 , 6 5 2 . 2 8 22 23 In t e r e s t : 24 Ac c a l t h r u P r i o r M o n t h $ 0. 0 0 0. 0 0 39 9 . 1 3 1, 2 2 6 . 2 3 2, 6 1 9 . 6 5 4, 4 2 2 . 8 4 6, 6 5 8 . 9 4 9, 2 3 5 . 9 6 12 , 4 6 6 . 8 6 16 , 2 6 6 . 6 5 20 , 4 7 4 . 5 8 25 , 0 7 6 . 2 2 25 Mo n t h l Y I n t e r e s t R a t e 5. 0 % 5. 0 % 5.0 % 5.0 % 5. 0 % 5. 0 % 5.0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 26 Mo n t h l Y I n t e r e s t I n e l E x p ) $ 0. 0 0 39 9 . 1 3 82 7 . 1 0 13 9 3 . 4 2 18 0 3 . 1 9 2, 2 3 6 . 1 0 25 7 7 . 0 2 3, 2 3 0 . 9 0 37 9 9 . 7 9 42 0 7 . 9 3 4, 6 0 1 . 6 4 50 0 7 . 8 3 30 , 0 8 4 . 0 5 27 In t e r e s t A c c r u e d t o d a t e $ 0. 0 0 39 9 . 1 3 1, 2 2 6 . 2 3 2,6 1 9 . 6 5 4, 4 2 2 . 8 4 6, 6 5 8 . 9 4 9, 2 3 5 . 9 6 12 , 4 6 6 . 8 6 16 , 2 6 6 . 6 5 20 , 4 7 4 . 5 8 25 , 0 7 6 . 2 2 30 , 0 8 4 . 0 5 28 29 To t a l S m a l l C o m m e r c i a l F C A : 95 7 9 0 . 9 7 19 8 9 0 3 . 9 5 33 5 6 4 7 . 2 1 43 5 3 8 5 . 2 9 54 1 0 8 7 . 8 6 62 5 1 4 4 . 1 5 78 4 6 5 1 . 8 9 92 4 4 1 6 . 7 2 1 0 2 6 , 1 6 9 . 4 3 1, 1 2 4 , 8 6 7 . 8 5 12 2 6 9 5 6 . 5 5 1 3 3 5 , 7 3 6 . 3 3 1, 3 3 5 7 3 6 . 3 3 30 31 32 To t a l F i x e d C o s t A d j u s t m e n t $ 32 5 , 9 8 5 . 5 8 18 3 1 4 2 2 . 7 9 68 4 4 9 8 . 8 9 40 8 5 9 1 . 0 0 45 5 , 2 8 6 . 3 5 18 2 , 0 0 4 . 5 4 11 0 3 3 3 1 . 6 3 17 0 8 3 5 6 . 2 1 1, 9 3 5 9 2 3 . 8 2 23 9 8 0 9 7 . 3 7 25 9 6 2 8 4 . 1 2 27 2 1 2 1 8 . 6 5 27 2 1 2 1 8 . 6 5 35 36 37 En t r i e s : 38 Dr . 5 9 9 X 0 0 0 0 1 9 9 9 1 8 2 3 0 2 ( 2 5 4 3 0 2 32 5 , 9 8 5 . 5 8 (5 0 5 , 4 3 7 . 2 1 16 6 , 9 2 3 . 9 0 25 5 , 9 0 7 . 8 9 (4 6 , 6 9 5 . 3 5 27 3 , 2 8 1 . 8 1 1, 2 8 5 , 3 3 6 . 1 7 60 5 , 0 2 4 . 5 8 22 7 , 5 6 7 . 6 1 46 2 , 1 7 3 . 5 5 19 8 , 1 8 6 . 7 5 12 4 , 9 3 4 . 5 3 2,7 2 1 , 2 1 8 . 6 5 39 Cr . 5 9 9 X 0 0 0 0 1 9 9 9 4 0 7 4 0 5 32 5 , 9 8 5 . 5 8 50 4 , 0 7 8 . 9 4 17 0 , 3 8 2 . 5 1 25 8 , 6 5 6 . 5 7 45 , 0 2 4 . 4 1 27 5 , 1 4 0 . 3 6 1, 2 8 6 , 0 4 8 . 2 9 60 0 , 3 7 8 . 1 7 22 0 , 4 1 9 . 6 2 45 4 , 1 0 7 . 1 5 18 8 , 2 2 8 . 2 3 11 4 , 1 9 1 . 7 3 12 , 6 9 2 , 4 6 3 . 7 0 40 Cr . 9 9 8 X 0 0 0 0 1 9 9 9 4 2 1 0 0 6 ( 4 3 1 0 1 3 1, 3 5 8 . 2 7 3, 4 5 8 . 6 1 2, 7 4 8 . 6 8 1,6 7 0 . 9 4 1, 8 5 8 . 5 5 71 2 . 1 2 4, 6 4 6 . 4 1 (7 , 1 4 7 . 9 9 18 , 0 6 6 . 4 0 19 , 9 5 8 . 5 2 10 , 7 4 2 . 8 0 28 , 7 5 4 . 9 5 41 Ex h i b i t N o . 3 Ca s e N o . I P C - E - 0 9 - 0 6 S. S p a r k s Pa g e 1 o f 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-09-06 . IDAHO POWER COMPANY SPARKS, 01 TESTIMONY EXHIBIT NO.4 Id a h o P o w e r C o m p a n y Fi x e d C o s t A d j u s t m e n t M o n t h l y A c c o u n t i n g R e p o r t Ja n u a r y 2 0 0 8 . M a y 2 0 0 9 A B C 0 E G H I K L M 1 Fi x e d C o s t A d j u s t m e n t Ja n u a r v Fe b r u a r v Ma r c h Ao r i l Ma v Ju n e Ju l v Au g u s t Se p t e m b e r 2 fo r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 0 8 3 4 Re s i d e n t i a l F C A : 5 B e g i n n i n g B a l a n c e $ 0. 0 0 (4 2 1 , 7 7 6 . 5 5 ) (1 , 0 2 8 , 5 6 9 . 3 4 ) (9 9 4 , 1 0 2 . 9 9 ) (8 3 3 , 7 9 1 . 0 8 ) (9 8 2 , 7 1 4 . 8 7 ) (7 8 9 , 3 9 4 . 7 0 33 9 , 7 2 2 . 8 7 80 3 , 5 6 7 . 1 1 6 Am o u n t D e f e r r e d $ (4 2 1 , 7 7 6 . 5 5 ) (6 0 6 , 7 9 2 . 7 9 ) 34 , 4 6 6 . 3 5 16 0 , 3 1 1 . 9 1 (1 4 8 , 9 2 3 . 7 9 ) 19 3 , 3 2 0 . 1 7 1, 1 2 9 , 1 1 7 . 5 7 46 3 , 8 4 4 . 2 4 12 2 , 4 6 6 . 7 0 7 En d i n g B a l a n c e $ (4 2 1 , 7 7 6 . 5 5 ) (1 , 0 2 8 , 5 6 9 . 3 4 ) (9 9 4 , 1 0 2 . 9 9 (8 3 3 , 7 9 1 . 0 8 ) (9 8 2 , 7 1 4 . 8 7 ) (7 8 9 , 3 9 4 . 7 0 ) 33 9 , 7 2 2 . 8 7 80 3 , 5 6 7 . 1 1 92 6 , 0 3 3 . 8 1 8 9 I n t e r e s t : 10 Ac c u a l t h r u P r i o r M o n t h $ 0. 0 0 0.0 0 (1 , 7 5 7 . 4 0 ) (6 , 0 4 3 . 1 1 (1 0 , 1 8 5 . 2 1 ) (1 3 , 6 5 9 . 3 4 ) (1 7 , 7 5 3 . 9 9 ) (2 1 , 0 4 3 . 1 3 ) (1 9 , 6 2 7 . 6 2 ) 11 Mo n t h l y I n t e r e s t R a t e 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 12 Mo n t h l y I n t e r e s t I n c J ( E x p ) $ 0. 0 0 (1 , 7 5 7 . 4 0 ) (4 , 2 8 5 . 7 1 \ (4 , 1 4 2 . 1 0 (3 4 7 4 . 1 3 ) (4 , 0 9 4 . 6 5 (3 2 8 9 . 1 4 ) 1, 4 1 5 . 5 1 3, 3 4 8 . 2 0 13 In t e r e s t A c c r u e d t o d a t e $ 0. 0 0 (1 , 7 5 7 . 4 0 ) (6 , 0 4 3 . 1 1 ) (1 0 , 1 8 5 . 2 1 ) (1 3 , 6 5 9 . 3 4 ) (1 7 , 7 5 3 . 9 9 ) (2 1 , 0 4 3 . 1 3 ) (1 9 , 6 2 7 . 6 2 ) (1 6 , 2 7 9 . 4 2 ) 14 15 To t a l R e s i d e n t i a l F C A : (4 2 1 , 7 7 6 . 5 5 ) (1 , 0 3 0 , 3 2 6 . 7 4 ) (1 0 0 0 , 1 4 6 . 1 0 ) (8 4 3 , 9 7 6 . 2 9 (9 9 6 , 3 7 4 . 2 1 ) (8 0 7 1 4 8 . 6 9 31 8 , 6 7 9 . 7 4 78 3 , 9 3 9 . 4 9 90 9 , 7 5 4 . 3 9 16 17 18 Sm a l l C o m m e r i c a l F C A : 19 Be g i n n i n g B a l a n c e $ 0. 0 0 95 , 7 9 0 . 9 7 19 8 , 5 0 4 . 8 2 33 4 , 4 2 0 . 9 8 43 2 , 7 6 5 . 6 4 53 6 , 6 6 5 . 0 2 61 8 , 4 8 5 . 2 1 77 5 , 4 1 5 . 9 3 91 1 , 9 4 9 . 8 6 20 Am o u n t D e f e r r e d $ 95 , 7 9 0 . 9 7 10 2 , 7 1 3 . 8 5 13 5 , 9 1 6 . 1 6 98 , 3 4 4 . 6 6 10 3 , 8 9 9 . 3 8 81 8 2 0 . 1 9 15 6 , 9 3 0 . 7 2 13 6 , 5 3 3 . 9 3 97 , 9 5 2 . 9 2 21 En d i n g B a l a n c e $ 95 , 7 9 0 . 9 7 19 8 , 5 0 4 . 8 2 33 4 , 4 2 0 . 9 8 43 2 , 7 6 5 . 6 4 53 6 , 6 6 5 . 0 2 61 8 , 4 8 5 . 2 1 77 5 , 4 1 5 . 9 3 91 1 , 9 4 9 . 8 6 1, 0 0 9 , 9 0 2 . 7 8 22 23 In t e r e s t : 24 Ac c r u a l t h r u P r i o r M o n t h $ 0. 0 0 0. 0 0 39 9 . 1 3 1, 2 2 6 . 2 3 2, 6 1 9 . 6 5 4, 4 2 2 . 8 4 6, 6 5 8 . 9 4 9, 2 3 5 . 9 6 12 , 4 6 6 . 8 6 25 Mo n t h l y I n t e r e s t R a t e 5. 0 % 5. 0 % 5. 0 % 5.0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 26 Mo n t h l y I n t e r e s t I n c J ( E x p ) $ 0. 0 0 39 9 . 1 3 82 7 . 1 0 1, 3 9 3 . 4 2 1, 8 0 3 . 1 9 2, 2 3 6 . 1 0 2, 5 7 7 . 0 2 3, 2 3 0 . 9 0 3, 7 9 9 . 7 9 27 In t e r e s t A c c r u e d t o d a t e $ 0. 0 0 39 9 . 1 3 1, 2 2 6 . 2 3 2, 6 1 9 . 6 5 4, 4 2 2 . 8 4 6, 6 5 8 . 9 4 9, 2 3 5 . 9 6 12 , 4 6 6 . 8 6 16 , 2 6 6 . 6 5 28 29 To t a l S m a l l C o m m e r c i a l F C A : 95 , 7 9 0 . 9 7 19 8 9 0 3 . 9 5 33 5 6 4 7 . 2 1 43 5 3 8 5 . 2 9 54 1 , 0 8 7 . 8 6 62 5 , 1 4 4 . 1 5 78 4 , 6 5 1 . 8 9 92 4 , 4 1 6 . 7 2 1 0 2 6 1 6 9 . 4 3 30 31 32 To t a l F i x e d C o s t A d j u s t m e n t $ (3 2 5 , 9 8 5 . 5 8 (8 3 1 , 4 2 2 . 7 9 (6 6 4 , 4 9 8 . 8 9 ) (4 0 8 , 5 9 1 . 0 0 ) (4 5 5 , 2 8 6 . 3 5 (1 8 2 , 0 0 4 . 5 4 ) 1, 1 0 3 , 3 3 1 . 6 3 1, 7 0 8 , 3 5 6 . 2 1 1, 9 3 5 , 9 2 3 . 8 2 35 36 As o f J a n u a r y 2 0 0 9 b a l a n c e t o 1 8 2 3 0 9 37 En t r i e s : 38 Dr . 5 9 9 X 0 0 0 0 1 9 9 9 1 8 2 3 0 2 ( 2 5 4 3 0 2 ) 1 8 2 3 0 9 (3 2 5 , 9 8 5 . 5 8 ) (5 0 5 , 4 3 7 . 2 1 ) 16 6 , 9 2 3 . 9 0 25 5 , 9 0 7 . 8 9 (4 6 , 6 9 5 . 3 5 27 3 , 2 8 1 . 8 1 1, 2 8 5 , 3 3 6 . 1 7 60 5 , 0 2 4 . 5 8 22 7 , 5 6 7 . 6 1 39 Cr . 5 9 9 X 0 0 0 0 1 9 9 9 4 0 7 4 0 5 32 5 , 9 8 5 . 5 8 50 4 , 0 7 8 . 9 4 (1 7 0 , 3 8 2 . 5 1 ) (2 5 8 , 6 5 6 . 5 7 ) 45 , 0 2 4 . 4 1 (2 7 5 , 1 4 0 . 3 6 ) (1 , 2 8 6 , 0 4 8 . 2 9 ) (6 0 0 , 3 7 8 . 1 7 ) (2 2 0 , 4 1 9 . 6 2 40 Cr . 9 9 8 X 0 0 0 0 1 9 9 9 4 2 1 0 0 6 ( 4 3 1 0 1 3 ) - 1, 3 5 8 . 2 7 3, 4 5 8 . 6 1 2, 7 4 8 . 6 8 1, 6 7 0 . 9 4 1,8 5 8 . 5 5 71 2 . 1 2 (4 , 6 4 6 . 4 1 ) (7 , 1 4 7 . 9 9 41 Ex h i b i t N O . 4 Ca s e N o . I P C - E - 0 9 - 0 6 S. S p a r k s Pa g e 1 o f 2 Id a h o P o w e r C o m p a n y Fi x e d C o s t A d j u s t m e n t M o n t h l y A c c o u n t i n g R e p o r t Ja n u a r y 2 0 0 8 . M a y 2 0 0 9 A 0 P Q S T U V W X 1 Fi x e d C o s t A d j u s t m e n t Oc t o b e r No v e m b e r De c e m b e r Ja n u a r v Fe b r u a r v Ma r c h Ap r i l Ma y To t a l s 2 fo r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 0 8 3 4 R e s i d e n t i a l F C A : 5 B e g i n n i n g B a l a n c e 92 6 , 0 3 3 . 8 1 1, 2 8 5 , 6 5 0 . 4 7 1, 3 7 6 , 3 9 1 . 6 4 1, 3 8 6 , 8 1 1 . 4 2 1, 3 8 6 , 8 1 1 . 4 2 1, 3 1 0 , 9 0 0 . 8 7 1, 3 1 0 , 9 0 0 . 8 7 1, 3 1 0 , 9 0 0 . 8 7 6 A m o u n t D e f e r r e d 35 9 , 6 1 6 . 6 6 90 , 7 4 1 . 1 7 10 , 4 1 9 . 7 8 0. 0 0 £7 5 9 1 0 . 5 5 0. 0 0 0. 0 0 0. 0 0 1, 3 1 0 , 9 0 0 . 8 7 7 E n d i n g B a l a n c e 1, 2 8 5 , 6 5 0 . 4 7 1, 3 7 6 , 3 9 1 . 6 4 1, 3 8 6 , 8 1 1 . 4 2 1, 3 8 6 , 8 1 1 . 4 2 1, 3 1 0 , 9 0 0 . 8 7 1, 3 1 0 , 9 0 0 . 8 7 1, 3 1 0 , 9 0 0 . 8 7 1, 3 1 0 , 9 0 0 . 8 7 8 9 I n t e r e s t : 10 Ac c r u a l t h r u P r i o r M o n t h (1 6 , 2 7 9 . 4 2 ) (1 2 , 4 2 0 . 9 5 ) (7 , 0 6 4 . 0 7 11 , 3 2 9 . 1 0 ) 98 2 . 2 5 3, 2 9 3 . 6 0 5, 4 7 8 . 4 3 7, 6 6 3 . 2 6 11 Mo n t h l y I n t e r e s t R a t e 5. 0 % 5. 0 % 5. 0 % 2. 0 % 2. 0 % 2.0 % 2. 0 % 2. 0 % 12 Mo n t h l y I n t e r e s t I n c l ( E x p ) 3, 8 5 8 . 4 7 5, 3 5 6 . 8 8 5, 7 3 4 . 9 7 23 1 1 . 3 5 2, 3 1 1 . 3 5 2, 1 8 4 . 8 3 2, 1 8 4 . 8 3 2, 1 8 4 . 8 3 9, 8 4 8 . 0 9 13 In t e r e s t A c c r u e d t o d a t e (1 2 , 4 2 0 . 9 5 ) (7 , 0 6 4 . 0 7 ) 11 , 3 2 9 . 1 0 98 2 . 2 5 3, 2 9 3 . 6 0 5, 4 7 8 . 4 3 7, 6 6 3 . 2 6 9, 8 4 8 . 0 9 14 15 To t a l R e s i d e n t i a l F C A : 1, 2 7 3 , 2 2 9 . 5 2 1,3 6 9 , 3 2 7 . 5 7 1, 3 8 5 4 8 2 . 3 2 1 3 8 7 , 7 9 3 . 6 7 1, 3 1 4 , 1 9 4 . 4 7 1, 3 1 6 , 3 7 9 . 3 0 1, 3 1 8 5 6 4 . 1 3 1, 3 2 0 , 7 4 8 . 9 6 1,3 2 0 , 7 4 8 . 9 6 16 17 18 Sm a l l C o m m e r i c a l F C A : 19 Be g i n n i n g B a l a n c e 1,0 0 9 , 9 0 2 . 7 8 1,1 0 4 , 3 9 3 . 2 7 1, 2 0 1 , 8 8 0 . 3 3 1, 3 0 5 , 6 5 2 . 2 8 1, 3 0 5 , 6 5 2 . 2 8 1, 3 5 2 , 9 6 5 . 4 7 1, 3 5 2 , 9 6 5 . 4 7 1, 3 5 2 , 9 6 5 . 4 7 20 Am o u n t D e f e r r e d 94 , 4 9 0 . 4 9 97 , 4 8 7 . 0 6 10 3 , 7 7 1 . 9 5 0. 0 0 47 , 3 1 3 . 1 9 0.0 0 0. 0 0 0. 0 0 1, 3 5 2 9 6 5 . 4 7 21 En d i n g B a l a n c e 1, 1 0 4 , 3 9 3 . 2 7 1, 2 0 1 , 8 8 0 . 3 3 1, 3 0 5 , 6 5 2 . 2 8 1, 3 0 5 , 6 5 2 . 2 8 1, 3 5 2 , 9 6 5 . 4 7 1, 3 5 2 , 9 6 5 . 4 7 1, 3 5 2 , 9 6 5 . 4 7 1, 3 5 2 , 9 6 5 . 4 7 22 23 In t e r e s t : 24 Ac c r u a l t h r u P r i o r M o n t h 16 , 2 6 6 . 6 5 20 , 4 7 4 . 5 8 25 , 0 7 6 . 2 2 30 , 0 8 4 . 0 5 32 , 2 6 0 . 1 4 34 , 4 3 6 . 2 3 36 , 6 9 1 . 1 7 38 , 9 4 6 . 1 1 25 Mo n t h l y I n t e r e s t R a t e 5. 0 % 5. 0 % 5. 0 % 2. 0 % 2. 0 % 2. 0 % 2. 0 % 2. 0 % 26 Mo n t h l y I n t e r e s t I n c l ( E x p ) 4, 2 0 7 . 9 3 4, 6 0 1 . 6 4 50 0 7 . 8 3 2, 1 7 6 . 0 9 2, 1 7 6 . 0 9 2, 2 5 4 . 9 4 2, 2 5 4 . 9 4 2, 2 5 4 . 9 4 41 2 0 1 . 0 5 27 In t e r e s t A c c r u e d t o d a t e 20 , 4 7 4 . 5 8 25 , 0 7 6 . 2 2 30 , 0 8 4 . 0 5 32 , 2 6 0 . 1 4 34 , 4 3 6 . 2 3 36 , 6 9 1 . 1 7 38 , 9 4 6 . 1 1 41 , 2 0 1 . 0 5 28 29 To t a l S m a l l C o m m e r c i a l F C A : 1,1 2 4 , 8 6 7 . 8 5 1, 2 2 6 , 9 5 6 . 5 5 1, 3 3 5 , 7 3 6 . 3 3 1 3 3 7 9 1 2 . 4 2 1, 3 8 7 , 4 0 1 . 7 0 1 3 8 9 , 6 5 6 . 6 4 1, 3 9 1 , 9 1 1 . 5 8 1, 3 9 4 , 1 6 6 . 5 2 1, 3 9 4 , 1 6 6 . 5 2 30 31 32 To t l F i x e d C o s t A d j u s t m e n t 2, 3 9 8 , 0 9 7 . 3 7 2, 5 9 6 , 2 8 4 . 1 2 2, 7 2 1 , 2 1 8 . 6 5 2, 7 2 5 , 7 0 6 . 0 9 27 0 1 5 9 6 . 1 7 2,7 0 6 0 3 5 . 9 4 2, 7 1 0 , 4 7 5 . 7 1 2, 7 1 4 , 9 1 5 . 4 8 2, 7 1 4 , 9 1 5 . 4 8 35 36 As o f J a n u a r y 2 0 0 9 b a l a n c e t o 1 8 2 3 0 9 37 En t r i e s : 38 Dr . 5 9 9 X 0 0 0 0 1 9 9 9 1 8 2 3 0 2 ( 2 5 4 3 0 2 ) 1 8 2 3 0 9 46 2 , 1 7 3 . 5 5 19 8 , 1 8 6 . 7 5 12 4 , 9 3 4 . 5 3 4, 4 8 7 . 4 4 (2 4 , 1 0 9 . 9 2 ) 4, 4 3 9 . 7 7 4, 4 3 9 . 7 7 4, 4 3 9 . 7 7 2, 7 1 4 , 9 1 5 . 4 8 39 Cr . 5 9 9 X 0 0 0 0 1 9 9 9 4 0 7 4 0 5 (4 5 4 , 1 0 7 . 1 5 ) (1 8 8 , 2 2 8 . 2 3 ) (1 1 4 , 1 9 1 . 7 3 - 28 , 5 9 7 . 3 6 - - - (2 , 6 6 3 , 8 6 6 . 3 4 ) 40 Cr . 9 9 8 X 0 0 0 0 1 9 9 9 4 2 1 0 0 6 ( 4 3 1 0 1 3 ) (8 , 0 6 6 . 4 0 ) (9 , 9 5 8 . 5 2 ) (1 0 , 7 4 2 . 8 0 (4 , 4 8 7 . 4 4 (4 , 4 8 7 . 4 4 ) (4 , 4 3 9 . 7 7 ) (4 , 4 3 9 . 7 7 ) (4 , 4 3 9 . 7 7 (5 1 , 0 4 9 . 1 4 ) 41 Ex h i b i t N O . 4 Ca s e N o . I P C - E - 0 9 - 0 6 S. S p a r k s Pa g e 2 o f 2