20090403Application.pdf

esIDA~POR~
An IDACORP Company
BARTON L. KLINE
Lead Counsel
April 2, 2009
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 WestWashington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-09-10
IN THE MA TTER OF THE APPLICA TlONOF IDAHO POWER COMPANY
FOR AN ACCOUNTING ORDER APPROVING AMORTIZA TlON OF
FEDERAL AGENCY ANNUAL FEES
Dear Ms. Jewell:
Enclosed please find for filing an original and seven (7) copies of Idaho Power's
Application in the above matter.
i would appreciate it if you would return a stamped copy of this letter for my file in
the enclosed stamped, self-addressed envelope.
Very truly yours,~
Barton L. Kline
BLK:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
BARTON L. KLINE, ISB #1526
DONOVAN E. WALKER, ISB #5921
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
bkline~idahopower.com
dwalker~idahopower.com
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zon9 APR -2 PM 4: 51
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 MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR AN ) CASE NO. IPC-E-09-10
ACCOUNTING ORDER APPROVING )
AMORTIZATION OF FEDERAL ) IDAHO POWER COMPANY'S
AGENCY ANNUAL FEES. ) APPLICATION FOR AN
) ACCOUNTING ORDER APPROVING
) AMORTIZATION OF FEDERAL
) AGENCY ANNUAL FEES
COMES NOW, Idaho Power Company ("Idaho Powet' or "the Company"), in
accordance with the provisions of Idaho Code § 61-524 and RP 052, hereby applies for
an accounting order approving the accounting for amortization of federal agency fee
amounts refunded in 2006.
In support of this Application, Idaho Power states as follows:
1. Idaho Power is an electric corporation and public utilty in the state of
Idaho and is subject to the jurisdiction of the Commission with regards to its rates,
service, and accounting practices.
IDAHO POWER COMPANY'S APPLICATION FOR AN ACCOUNTING
ORDER APPROVING AMORTIZATION OF FEDERAL AGENCY ANNUAL FEES - 1
2. This Application is filed pursuant to Idaho Code § 61-524, which
authorizes the Commission to prescribe the accounting to be used by public utilities
subject to its jurisdiction.
3. Communications regarding this Application should be addressed to:
Barton L. Kline
Donovan E. Walker
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
bkline~idahopower.com
dwalker~idahopower.com
John R. Gale
Vice President, Regulatory Affairs
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
rgale~idahopower.com
I. BACKGROUND
4. In Order No. 30722 issued on January 30, 2009, the Commission directed
Idaho Power to amortize, over a five year period, an approximately $3.2 millon credit
Idaho Power received in 2006 as a reimbursement of annual fees incorrectly assessed
by various federal agencies, including the Federal Energy Regulatory Commission
("FERC Refund").
5. Had the Company known it had a liability at the time of the refund,
Generally Accepted Accounting Principles ("GAAP") would have directed the Company
to recognize an expense and an associated liability for that amount in 2006.
6. Subsequently, the Company would have requested accounting treatment
following the recognition of the liability for the amortization in accordance with FAS71.
II. REQUESTED ACCOUNTING TREATMENT
7. Based on the foregoing, Idaho Power requests that the Commission
approve the following accounting entries:
IDAHO POWER COMPANY'S APPLICATION FOR AN ACCOUNTING
ORDER APPROVING AMORTIZATION OF FEDERAL AGENCY ANNUAL FEES - 2
(1 )
401 Operation Expense
699 G40001 431 928101 $ 1,707,209.00
254 Other Regulatory Liabilities - FERC Credit OFA699 X00001 999254XX $ 1,707,209.00
To record the deferral of the Idaho jurisdictional percentage of the FERC
Refund. The credit was received in September 2006; therefore, the
amortization period would commence in October 2006 and be amortized
over 60 months (5 years) ending September 2011. The above amount
represents the unamortized Idaho jurisdictional percentage at December
31,2008.
(2)
254 Other Regulatory Liabilities - FERC Credit OFA Fees
699 X00001 999254XX $ 51,734.00
401 Operation Expense
699 G40001 439928101 $ 51,734.00
To record the Idaho jurisdiction monthly amortization of $51,734.00
($3,104,016/60 months) of the FERC Refund over the remaining term of
the five year period. The amortization wil begin January 2009 and end
September 2011.
WHEREFORE, Idaho Power respectfully requests the Commission consider this
matter under modified procedure pursuant to RP 201-204 and issue its order approving
Idaho Powets amortization of the FERC Refund consistent with the accounting entries
described above.
DATED at Boise, Idaho, this 2nd day of April 2009.
_CldL
BARTON L. KLINE
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S APPLICATION FOR AN ACCOUNTING
ORDER APPROVING AMORTIZATION OF FEDERAL AGENCY ANNUAL FEES - 3