20091208notice_of_modified_procedure_order_no_30960.pdf

Office of the Secretary
Service Date
December 8, 2009
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 CREDIT AND APPROVING RATE CASE MORATORIUM
CASE NO. IPC-09-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30960
YOU ARE HEREBY NOTIFIED that on November 6 2009, Idaho Power Company
filed an Application requesting a Commission Order to authorize the Company to amortize
accumulated deferred investment tax credits (ADITC), and approving a Stipulation signed by the
Company, Staff and five other parties. The Stipulation calls for a moratorium on a general rate
case; establishes Idaho Power s permitted use of ADITC for the years 2009, 2010 and 2011;
establishes a sharing mechanism for potential revenue sharing; and proposes base rate
adjustments based on results of the 2010 annual Power Cost Adjustment (PCA).
YOU ARE FURTHER NOTIFIED that the Stipulation states that Idaho Power will
not file a general rate case that would change its revenue requirement and resulting rates to
become effective prior to January 1 , 2012. The rate case moratorium does not affect other
revenue requirement proceedings, such as the PCA, the Fixed Cost Adjustment (FCA), an annual
advanced metering infrastructure rate adjustment, an annual pension expense recovery, or the
energy efficiency rider adjustment.
YOU ARE FURTHER NOTIFIED that the Accounting Order the Company requests
affects its use of ADITC. If the Company s return on equity falls below 9.5%, the Company
would be permitted to amortize additional ADITC in an amount up to $45 million over the three-
year period 2009-2011. The Company could use no more than $15 million of additional
amortization in one year (unless there is a carryover), and if the Company s return on equity
exceeds 10.5%, the Company will share 50% of any profits in excess of a 10.5% return on equity
with customers.
YOU ARE FURTHER NOTIFIED that the Stipulation also proposes base rate
adjustments based on 2010 PCA results. Because Idaho Power and the parties anticipate the
PCA rate calculation for 2010 will be a substantial reduction in PCA rates, the Company will
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30960
request that the Commission change the base level for net power supply expenses to be used for
both base rates and PCA calculations. The Stipulation provides that 2010 PCA reduction up to
the first $40 million will be allocated equally between customers and the Company. The
Company s share of this PCA rate reduction would be applied to increase permanent base rates
on a uniform percentage basis to all customer classes and contract customers. The customers
share of this PCA rate reduction wou~d, be a direct customer rate reduction. All of the PCA rate
reduction above $40 million up to $60 million will be provided directly to customers as a rate
reduction. A 2010 PCA rate reduction in excess of $60 million will be applied to absorb any
increase in the base level for net power supply expenses. If the 2010 PCA rate reduction exceeds
$60 million, plus the established increase in base net power supply expenses, the next $10
million will be shared equally between the Company and its customers and any remainder will
go entirely to customers.
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 opposition with the Commission within
fourteen (14) 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:
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
Mail: bkline~idahopower.com
lnordstrom~idahopower. com
472 W. Washington Street
Boise, ID 83702-5918
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30960
John R. Gale
Vice President, Regulatory Affairs
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: rgale~idahopower.com
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 the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code and specifically Idaho Code ~~ 61-124, 61-125
61-307 61-502 61-503, and 61-507. 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, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Petition of Idaho Power Company for approval
to authorize the Company to amortize accumulated deferred investment tax credits and
approvmg a Stipulation be processed by Modified Procedure IDAPA 31.01.01.201-204.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30960
Persons interested in submitting written comments in this matter must do so within fourteen (14)
days from the service date of this Notice.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
t+-
day of December 2009.
. KE PTO PRE IDENT
MARSHA H. SMITH, COMMISSIONER
ISSIONER
ATTEST:
~J\' ~x tf
D. Jewel
Commission Secretary
bls/O:IPC-O9-30 ws2
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30960