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Home My WebLink About20091231Response to ICL Comments.pdfDecember 31, 2009 esIDA~PO~ An IDACORP Company BARTON L. KLINE Lead Counsel bkline~idahopower.com VIA HAND DELIVERY 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-09-30 IN THE MA ITER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AN ACCOUNTING ORDER TO AMORTIZE ADDITIONAL ACCUMULATED DEFERRAL INCOME TAX CREDITS AND AN ORDER APPROVING A RA TE CASE MORA TORIUM Dear Ms. Jewell: Enclosed please find for filing an original and seven (7) copies of Idaho Power Company's Response to Comments of Idaho Conservation League in the above matter.ve~~ Barton L. Kline BLK:csb Enclosures BARTON L. KLINE (ISB No. 1526) LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 Facsimile: (208) 388-6936 bklinecæidahopower.com Inordstromcæidahopower.com RECEI n 2009 DEC 31 PH 2: 34 IDAHO UTILITIES 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 ACCOUNTING ORDER TO AMORTIZE ) ADDITIONAL ACCUMULATED DEFERRAL )INCOME TAX CREDITS )AND ) AN ORDER APPROVING A RATE CASE )MORATORIUM. ) ) CASE NO. IPC-E-09-30 IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE On December 22, 2009, the Idaho Conservation League ("ICL") filed comments with the Commission regarding Idaho Power Company's ("Idaho Power" or "Company") Application in this case. ICL notes in its comments that it does not object to the substance of the settlement. In fact, ICL acknowledges that the settlement reached in this case may be in the best interest of Idaho Power's customers. (ICL comments, p. 3.) Instead, ICL's comments express concern relating to the process that led to the settlement in this case. ICL finds the process that led to the settlement to be IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 1 "troublesome." (ICL comments, p. 2.) To be clear, ICL is not alleging that the process followed did not provide procedural due process. ICL's concerns are focused on the need for the public to be informed whenever settlement discussions are being contemplated. Because ICL acknowledges that the settlement may be in the best interest of customers and does not indicate that the settlement raises issues of procedural due process, Idaho Power's initial response was to refrain from submitting a response. However, there are two areas of ICL's comments that may leave the wrong impression with the Commission and therefore require some clariication. 1. The Public Was Not Excluded from the Settlement Process. Idaho Power would be the first to admit that the process leading up to the settlement was unusuaL. What started out as a limited discussion on a mechanism to provide earnings stability moved, at the request of Idaho Power's customers and Commission Staff, into a rate moratorium and full settlement of the general rate case that Idaho Power was on the brink of filing. ICL's comments indicate that the "public" was somehow left out of the settlement process. Idaho Power does not believe that is a fair representation of what occurred. As noted in the testimony on file in this proceeding, the first meeting was initiated by Idaho Power and was intended to discuss a very limited topic, Le., the use of accelerated investment tax credits to provide earning stabilty. (Testimony of Randy Lobb, pp. 8-9.) Idaho Power invited all of the parties that had intervened as parties in its last general rate case to that meeting. During and after that meeting, the Company was advised that there were other entities that might be interested in participating in the discussions. In response to that information, after the IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 2 first meeting, Idaho Power met with the parties that had been identified as being interested and provided an individual briefing on the issues being discussed in the meetings. ICL was one of the parties that participated in such an individual meeting with Idaho Power and ICL actively participated in subsequent settlement discussions. When the Commission considers the identity of the Parties that signed the Stipulation and participated in the settlement discussion, it is clear that these entities represent the full spectrum of Idaho Power's customer groups. There is not one group of current customers that did not actively participate in the settlement process. As a result, the Commission should not be concerned that the "public" was not adequately represented throughout the entire settlement discussion process. The second reason that Idaho Power believes that ICL's concerns with a potential lack of prior notice to the public may be overstated arises out of the fact that it is the Commission, not the parties to a settlement, that decides if a settlement is in the public interest. Simply because a settlement proposal has been negotiated does not change Idaho Power's rates. Only the Commission changes Idaho Power's rates if it believes the settlement is in the public interest. The Commission's process for notifying the public that a settlement proposal has been submitted to the Commission provides a full and adequate opportunity for the public to comment on the settlement and to provide the Commission with their opinions as to the merits or demerits of the settlement. 2. Additional Procedural Rules Are Not Needed. On page 2 of its comments, ICL discusses the Commission's current Rules of Procedure governing settlements and concludes that the current Rules are ambiguous when applied to the admittedly unique circumstances that led to this settlement. ICL IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 3 concludes that because of this ambiguity, the Commission must provide "guidance" (ICL comments, p. 3.) ICL's comments do not indicate if the guidance should be in the form of new Rules of Practice and Procedure or if something less formal is acceptable. Idaho Power certainly has no objection to including interested parties in settlement discussions. However, Idaho Power believes the Commission should proceed with caution before adding another layer of procedure and formality to the settlement process. New rules that delay the process and make it more cumbersome could have the perverse effect of reducing the likelihood that successful settlements can be negotiated. It is not desirable to sacrifice a very good process in order to have a perfect process that deters settlements. Idaho Power also recommends that the Commission carefully consider whether it is prudent to expend valuable resources developing new rules of practice and procedure to address a situation that is very unusual and, frankly, is unlikely to occur again. As the Commission can see from the testimony already filed in this proceeding, this settlement is the creative product of a unique convergence of a number of events, Le., large potential PCA refunds, recent rate case decisions, etc. Such a unique convergence is not likely to occur again. In summary, Idaho Power certainly appreciates ICL's desire to ensure that all interested parties have an opportunity to have their unique perspectives considered in settlement discussions. However, the Company believes that in light of the unusual circumstances in this case, no changes to the Commission's Rules of Practice and Procedure are necessary to ensure that due process is provided to the public. IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 4 DATED this 31st day of December 2009. (1cL'BARTON L. KLINE Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 31st day of December 2009 I served a true and correct copy of the foregoing IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE upon the following named parties by the method indicated below, and addressed to the following: . Commission Staff Weldon B. Stutzman Deputy Attomey General Idaho Public Utilties Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 Industrial Customers of Idaho Power Peter J. Richardson, Esq. RICHARDSON & O'LEARY PLLC 515 North 27th Street P.O. Box 7218 Boise, Idaho 83702 Idaho Irrigation Pumpers Association, Inc. Eric L. Olsen RACINE, OLSON, NYE, BUDGE & BAILEY, CHARTERED P.O. Box 1391 201 East Center Pocatello, Idaho 83204-1391 Kroger Co. I Fred Meyer and Smiths Michael L. Kurt Kurt J. Boehm BOEHM, KURTZ & LOWRY 36 East Seventh Street, Suite 1510 Cincinnati, Ohio 45202 Kevin Higgins Energy Strategies, LLC Parkside Towers 215 South State Street, Suite 200 Salt Lake City, Utah 84111 -- Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email Weldon.stutzmancæpuc.idaho.gov Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email petercærichardsonandoleary.com Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email elocæracinelaw.net Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email mkurtcæBKLlawfirm.com kboehmcæBKLlawfirm .com Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email khigginscæenergystrat.com IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 6 Micron Technology Conley Ward Michael C. Creamer GIVENS PURSLEY, LLP 601 West Bannock Street P.O. Box 2720 Boise, Idaho 83701-2720 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email cewcægivenspursley.com mcccægivenspursley.com Department of Energy Lot R. Cooke Arthur Perry Bruder Ofce of the General Counsel United States Department of Energy 1000 Independence Avenue SW Washington, DC 20585 Routing Symbol GC-76 Hand Delivered U.S. Mail -- Overnight Mail FAX -- Email Lot.Cookecæhg.doe.gov Arthur. Brudercæhg.doe.gov Community Action Partnership Association Of Idaho Brad M. Purdy Attorney at Law 2019 North 17th Street Boise, Idaho 83702 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email bmpurdycæhotmail.com Snake River Allance Ken Miler Snake River Allance P.O. Box 1731 Boise, Idaho 83701 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email kmiller(âsnakeriverallance.org Idaho Conservation League Betsy Bridge Idaho Conservation League 710 North Sixth Street P.O. Box 844 Boise, Idaho 83701 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email bbridgecæidahoconservation.org ~ Barton L. Kline IDAHO POWER COMPANY'S RESPONSE TO COMMENTS OF IDAHO CONSERVATION LEAGUE - 7