20100422notice_of_application_order_no_31055.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
April 22, 2010
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY TO
INCREASE ITS RATES FOR ELECTRIC
SERVICE TO RECOVER ITS 2010 CASH
CONTRIBUTION TO DEFINED BENEFIT
PENSION EXPENSE
CASE NO. IPC-10-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 31055
YOU ARE HEREBY NOTIFIED that on March 15 2010, Idaho Power Company
filed an Application for an order approving an increase in rates, effective June 1 2010, to allow
recovery of the Company s 2010 cash contribution to its defined benefit pension expenses. In
February 2010, the Commission issued Order No. 31003 directing the Company to establish a
balancing account to track the difference between cash amounts contributed to its pension plan
and the amounts included in rates. The Company s Application states that its actuary has
determined that a cash contribution is necessary to its pension plan for the year beginning
January 1 , 2009. The Company expects the contribution amount to be $5 822 145 as of
September 15, 2010. The amount allocated to the Idaho jurisdiction, minus a small
reimbursement from a separate IDACORP subsidiary, is $5 416 796.
YOU ARE FURTHER NOTIFIED that Idaho Power s Application seeks approval of
$5,416 796 in pension cost recovery over a one-year amortization period to allow recovery
contemporaneous with the Company s 2010 cash contributions to the defined benefit pension
plan. The Company proposes to proportionately divide the Idaho-allocated share of the 2010
cash pension payments by total Idaho base revenues forecast for the period June 2010 through
May 2011. The Company also proposes to recover the 2010 contributions by an equal
percentage rate applicable to all base billing components within each customer class rate
schedule. This approach results in a rate increase of .77% for each class of customers served by
Idaho Power. The Company s proposed revised tariff sheets are Attachment 1 to its Application.
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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31055
Procedure pursuant to Rules 20 I 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:
Street Address for Express Mail:
Lisa D. Nordstrom
Donovan E. Walker
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E- Mail: InordstromcqJ,idahopower.com
dwalkercqJ,idahopo wer. com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074
472 W. Washington Street
Boise, ID 83702-5918 Tim Tatum
Greg Said
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: ttatum0idahopower.com
gsaid0idahopower.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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31055
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 s web site at
www.puc.idaho.gov by clicking on "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, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power Company to
increase its rates to recover its 20 I 0 cash contribution to defined benefit pension expense be
processed by 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31055
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;2 /
sf'
day of April2010.
~//. ~~/
JI . KEMPTON SIDENT
,J~MARSHA H. SMITH, COMMISSIONER
MACK A. REDFO
~~.
ATTEST:
Commission Secretary
bls/O:IPC-IO-O8 ws
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31055