20091123notice_of_application_order_no_30949.pdf

Offce of the Secretar
Service Date
November 23, 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 DEFERRL )
INCOME TAX CREDIT AND APPROVING A )RATE CASE MORATORIUM )
)
)
)
CASE NO. IPC-E-09-30
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30949
YOU ARE HEREBY NOTIFIED that on November 6,2009, Idaho Power Company
fied 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 paries. 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 sharng mechansm for potential revenue sharing; and proposes base rate
adjustments based on results of the 2010 anual Power Cost Adjustment (PCA).
YOU AR 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 Januar 1, 2012. The rate case moratorium does not affect other
revenue requirement proceedings, such as the PC A, the Fixed Cost Adjustment (FCA), an anual
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 retur on equity falls below 9.5%, the Company
would be permitted to amortize additional ADITC in an amount up to $45 millon over the three-
year period 2009-2011. The Company could use no more than $15 millon of additional
amortization in one year (unless there is a carover), and if the Company's retur on equity
exceeds 10.5%, the Company will share 50% of any profits in excess of a 10.5% retur on equity
with customers.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30949 1
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 calculàtion for 2010 wil be a substantial reduction in PCA rates, the Company wil
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 milion wil be allocated equaly between customers and the Company. The
Company's share of ths PCA rate reduction would be applied to increase permanent base rates
on a uniform percentage basis to all custÓmer classes and contract customers. The customers'
share of this PCA rate reduction would be a direct customer rate reduction. All of the PCA rate
reduction above $40 millon up to $60 milion will be provided directly to customers as a rate
reduction. A 2010 PCA rate reduction in excess of $60 milion wil be applied to absorb any
increase in the base level for net power supply expenses. If the 2010 PCA rate reduction exceeds
$60 milion, plus the established increase in base net power supply expenses, the next $10
milion will be shared equally between the Company and its customers and any remainder will
go entirely to customers.
YOU ARE FURTHER NOTIFIED that the Application together with supporting
testimonies and exhibits have been fied with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies and exhibits are also available on the Commission's web site at ww.puc.idaho.gov
by clicking on "File Room" and then "Electric Cases."
DEADLINE FOR INTERVENTION
YOU AR FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to the Commission's Rules of Procedure 72
and 73, IDAPA 31.01.01.072 and .073. Persons intending to participate at hearing must fie a
Petition to Intervene no later than foureen (14) days fromthe service date of this Order. Persons
seeking intervenor status shall also provide the Commission Secretar with their electronic mail
address to faciltate fuher communications in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without paries' rights of paricipation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other paries.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30949 2
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has
passed, the Commission Secretary shall issue a Notice of Paries. The Notice of Paries shall
assign exhibit numbers to each pary in this proceeding.
YOU ARE FURTHER NOTIFIED that after the Notice of Parties is issued, the
Commission anticipates that the paries will informally convene to devise a recommended
schedule to process this case. In addition to the schedule, the paries may discuss discovery
logistics, electronic service, and other scheduling matters.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idao 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 wil be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case for the
purose of presenting evidence or cross-examination at hearing shall fie a Petition to Intervene
with the Commission no later than foureen (14) days from the service date of this Order.
IT IS FURTHER ORDERED that after the Notice of Parties is issued, the Staff shall
informally convene a prehearng conference with the parties to discuss the processing of this
case.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30949 3
DONE by Order of the Idaho Public Utilties Commission at Boise, Idaho this :i3 hi
day of November 2009.
~~(;g¿. KE~TON,RESI ENT
6L. J~
MARSHA H. SMITH, COMMISSIONER~~~.
MACK A. REDFORD, COMMISSIONER
ATTEST:
~ii~
Commission Secretay
bls/O:IPC-E-09-30 _ ws
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINEORDER NO. 30949 4