20090319Application.pdf

1SIDA~POR~
An IDACORP Company
LISA D. NORDSTROM
Senior Counsel
March 18, 2009
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-09-08
IN THE MA TTER OF THE APPROPRIA TE DISPOSITION OF PROCEEDS
FOR THE SALE OF IDAHO POWER COMPANY'S S02 EMISSION
ALLOWANCES IN CALENDAR YEAR 2009
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 2009 in
the above-referenced matter.
Very truly yours,
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LDN:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
LISA D. NORDSTROM (ISB No. 5733)
BARTON L. KLINE (ISB No. 1526)
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
Inordstromc.idahopower.com
bklinec.idahopower.com
REGE
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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
APPROPRIATE DISPOSITION OF
PROCEEDS FOR THE SALE OF IDAHO
POWER COMPANY'S S02 EMISSION
ALLOWANCES IN CALENDAR YEAR
2009.
)
) CASE NO. IPC-E-09-08
)
) IDAHO POWER COMPANY'S INITIAL
) REPORT OF PROCEEDS FROM
) SALES OF S02 EMISSION
) ALLOWANCES IN 2009
)
1. In 2005, in Order No. 29852 issued in Case No. IPC-E-05-20, the
Commission granted Idaho Power Company ("Idaho Power" 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 2009 - 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 from the sale of
surplus sulfur dioxide emission allowances.
4. During 2009, conditions in the emission allowances market were such that
Idaho Power sold surplus sulfur dioxide emission allowances. Thus far in 2009, the
Company has either sold and received payment for, or entered into contracts for, the
sale of a total of 16,500 surplus sulfur dioxide emission allowances. The total
anticipated net proceeds, after deducting brokerage fees of $4,125, is $2,341,375.
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 but reserved judgment on the use of $500,000 for energy education
and set further proceedings in Case No. IPC-E-08-11.
6. Idaho Power filed an Initial Report of Proceeds from Sales of Sulfur
Dioxide Emissions Proceeds on July 24, 2008, in Case No. IPC-E-08-14. The
Company did not sell any other emission allowances in 2008.
7. 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 transferred in January 2009. In keeping with the terms of the Stipulation
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2009 - 2
approved by the Commission in Order No. 30715 (Case No. IPC-E-08-19), the new
Power Cost Adjustment 95%/5% Sharing Methodology wil apply to transactions taking
place on or after February 1, 2009 - "the first day of the month following Commission
approval of th(e) Stipulation." Idaho Power also proposes changing jurisdictional
percentages resulting from the Company's most recent Jurisdictional Separation Study
included in the 2008 Idaho General Rate Case Order No. 30722 starting on or after
February 1, 2009, from 94.7 percent to 94.79 percent. 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.
8. 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 2009 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 $XXX.XX
254 Other Regulatory Liabilties
699 X00001 999 254409 $XXX.XX
411.8 Gains from Disposition of Allowances
699 X00001 999411804 $XX.XX
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2009 - 3
(2)
To record the receipt of cash from the sale of emission allowances.
131 Cash
143 Other Accounts Receivable
699 X00001 999143900
$XXX.XX
$XXX.XX
(3)
To record Idaho Power's percentage 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 Allowance
699 X0001 999411804 $XX.XX
(4)
To transfer and separate Idaho and Oregon's jurisdictional percentage share of
the net proceeds from the sale of emission allowances.
254 Other Regulatory Liabilities
699 X0001 999 254409 $XXX.XX
254 Other Regulatory Liabilities - Idaho699 X0001 999254410 $XX.XX
254 Other Regulatory Liabilities - Oregon699 X0001 9992544411 $XX.XX
9. This initial report covers surplus sulfur dioxide emission allowance sales
during 2009 as of the date of this filing. Proceeds received after the date of this filing
will be included in a subsequent report.
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2009 - 4
.. ,
( -lRespectfully submitted this 10 day of March 2009.
~,l)~~LíD. NORïJOM
Attorney for Idalìo Power Company
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2009 - 5