20100208notice_of_application_order_no_31000.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
February 8 2010
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR A
PRUDENCY DETERMINATION OF
ENERGY EFFICIENCY RIDER FUNDS
SPENT IN 2002-2007
CASE NO. IPC-09-
NOTICE OF APPLICATION
NOTICE OF MOTION
TO APPROVE STIPULATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 31000
YOU ARE HEREBY NOTIFIED that in its 2008 rate case, Case No. IPC-08-
Idaho Power requested that the Commission find that its 2002-2007 expenditures on
conservation programs, funded by the Energy Efficiency Rider, were prudently incurred. Total
Rider expenditures during the period were approximately $33 million. The Commission
deferred a determination on the prudency of the expenditures pending additional information to
evaluate the programs ' effectiveness. In February 2009, Idaho Power and Staff filed a
Stipulation in that case establishing the prudency of a portion of the Rider funds the Company
spent during the five-year period. The Commission subsequently issued an Order finding that
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." The Stipulation
approved by the Commission also required the Company to file a pleading with the Commission
seeking a prudency determination for the balance of Rider funds spent during 2002-2007. On
April 1 , 2009, the Company filed an Application requesting the Commission find the remaining
expenses.
$14 657 971 in 2002-2007 Energy Efficiency Rider expenditures to be prudently incurred
YOU ARE FURTHER NOTIFIED that following the filing of the Company
Application, Staff and Idaho Power continued to discuss ways to evaluate the effectiveness of the
Company s demand-side management (DSM) programs. On October 5, 2009, Staff hosted a
DSM evaluation workshop, including an evaluation consultant retained by the Commission, to
NOTICE OF APPLICATION
NOTICE OF MOTION TO APPROVE STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31000
discuss appropriate levels of objective and transparent evaluation of DSM programs. As a result
of the workshop and follow-up discussions, Idaho Power and Staff agreed to terms for a
comprehensive utility annual DSM report, as set forth in a Memorandum of Understanding
(MOU). The MOU provides terms for Idaho Power to manage, plan, evaluate, and report its
DSM activities to the Commission. In addition, Staff and the Company signed a Stipulation
agreeing that the remaining balance of Rider funds spent during 2002-2007 ($14 657 971) were
prudent expenditures. The Memorandum of Understanding providing terms for reporting and
evaluation of DSM expenditures is attached to the Stipulation.
YOU ARE FURTHER NOTIFIED that on January 25, 2010, Idaho Power filed a
Motion to Approve Stipulation. In addition, the Company specifically requests that the
Commission confirm that the $14 657 971 in Energy Efficiency Rider expenditures the Company
made between 2002-2007 were prudent, and that the Commission provide feedback regarding
the DSM evaluations and prudency determinations discussed in the Memorandum of
Understanding. Because the 2002-2007 DSM expenditures were made using tariff rider funds, a
determination that the expenditures were prudent will not affect customer rates.
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure, IDAPA 31.01.01.201-204. The Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application may
be mailed to the Commission and Idaho Power at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MOTION TO APPROVE STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31000
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074
Street Address for Express Mail:
Barton L. Kline
Lisa D. Nordstrom
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E- Mail: bkline(fYidahopower.com
Inordstrom(fYidahopower. com
472 W. Washington Street
Boise, ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices or on the Commission website at
www.puc.idaho.gov under the "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, ID AP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power Company for
prudency determination of Energy Efficiency Rider funds spent in 2002-2007 be processed by
NOTICE OF APPLICATION
NOTICE OF MOTION TO APPROVE STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31000
Modified Procedure IDAPA 31.01.01.201-.204.Persons interested in submitting written
comments in this matter must do so within twenty-one (21) days from the service date of this
Notice.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this Sf4t
day of February 2010.
W6i
~-('--
JIM D. MPTON, P SIDENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COM
ATTEST:
~(j :J~Je D. Jewell.
Commission Secretary
bls/O:IPC-09-09 ws
NOTICE OF APPLICATION
NOTICE OF MOTION TO APPROVE STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31000