HomeMy WebLinkAbout20100615Application.pdfLISA D. NORDSTROM
Lead Counsel
Inordstromtiidahopower.com
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UTILITIES C()ti/MIS
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IDA~POR(I
An IDACORP Company
June 14, 2010
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-10-20
IN THE MA TTER OF THE APPROPRIATE DISPOSITION OF PROCEEDS
FOR THE SALE OF IDAHO POWER COMPANY'S S02 EMISSION
ALLOWANCES IN CALENDAR YEAR 2010
Dear Ms. Jewell:
Enclosed for filing please find an original and seven (7) copies of Idaho Power
Company's Initial Report of Proceeds from Sales of S02 Emission Allowances in 2010 in
the above matter.
Very truly yours,
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Lisa D. Nordstrom
LDN:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
LISA D. NORDSTROM (ISB No. 5733)
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-5825
Facsimile: (208) 388-6936
Inordstrom((idahopower.com
dwalker((idahopower.com
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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
APPROPRIATE DISPOSITION OF
PROCEEDS FOR THE SALE OF IDAHO
POWER COMPANY'S S02 EMISSION
ALLOWANCES IN CALENDAR YEAR
2010.
)
) CASE NO. IPC-E-10-20
)
) IDAHO POWER COMPANY'S INITIAL
) REPORT OF PROCEEDS FROM
) SALES OF S02 EMISSION
) ALLOWANCES IN 2010
)
1. In 2005, in Order No. 29852 issued in Case No. IPC-E-05-20, the
Commission granted Idaho Power Company ("Idaho Powet' or "the Company") blanket
authority to sell surplus sulfur dioxide ("S02") emission allowances.
2. In Order No. 29852, the Commission also approved the accounting
treatment to be used by the Company to record the sales of surplus sulfur dioxide
emission allowances from the time proceeds are received until the Commission
determined the appropriate ratemaking treatment of the proceeds.
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2010- 1
3. In Order No. 29852, the Company was also directed to file a report with
the Commission within sixty (60) days of the receipt of any proceeds from the sale of
surplus sulfur dioxide emission allowances.
4. During 2010, conditions in the emission allowances market were such that
Idaho Power sold surplus sulfur dioxide emission allowances. Thus far in 2010, the
Company has either sold and received payment for, or entered into contracts for, the
sale of a total of 10,000 surplus sulfur dioxide emission allowances. The total
anticipated net proceeds, after deducting brokerage fees of $2,500, is $427,000.
5. In Order No. 30041, issued in Case No. I PC-E-05-26 , the Commission
approved a sharing arrangement in which 90 percent of the state of Idaho's
jurisdictional share of the net sale proceeds, including tax effects, was allocated to
customers and the remaining 10 percent share was allocated to Idaho Power's
shareowners. In Order No. 30041, the Commission directed the Company to include
the sulfur dioxide allowance sales proceeds in the Power Cost Adjustment ("PCA") to
reduce the level of PCA rates.
6. Idaho Power proposes the jurisdictional percentages of (94.8 percent
Idaho/4.78 percent Oregon) and sharing of benefits authorized in the PCA Settlement
Order No. 30718, issued in Case No. IPC-E-08-19, (95/5 percent) be utilzed to allocate
the proceeds from sales of surplus sulfur dioxide emission allowances as those
currently used in the PCA. In this pleading, Idaho Power provides the Commission
notice of (1) the amounts of proceeds to be received so far and (2) that the Company
intends to use the same interim accounting for proceeds that the Commission approved
in 2005.
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2010 - 2
7. In accordance with the accounting approved in the Commission's Order
No. 29852, the Company is utilzing the following accounting entries to record the sales
of surplus sulfur dioxide emission allowances made thus far in 2010 as follows:
(1 )
To record the sale of emission allowances and establish a reserve for the Idaho
and Oregon portions in account 254 with the FERC portion recognized immediately in
account 411.8.
143 Other Accounts Receivable
699 X00001 999143900 $XX.XX
254 Other Regulatory Liabilties
699 X00001 999254409 $XX.XX
411.8 Gains from Disposition of Allowances
699 X00001 999411804 $XX.XX
(2)
To record the receipt of cash from the sale of emission allowances.
131 Cash
143 Other Accounts Receivable
699 X00001 999143900
$XX.XX
$XX.XX
(3)
To record Idaho Powets percentage share of the net proceeds from the sale of
emission allowances.
254 Other Regulatory Liabilties
699 X0001 999254409 $XX.XX
411800 Gains from Disposition of Allowance
699 X0001 999411804 $XX.XX
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2010- 3
(4)
To transfer and separate Idaho and Oregon's jurisdictional percentage share of
the net proceeds from the sale of emission allowances.
254 Other Regulatory Liabilties
699 X0001 999 254409 $XX.XX
254 Other Regulatory Liabilties - Idaho699 X0001 999254410 $XX.XX
254 Other Regulatory Liabilties - Oregon699 X0001 999 2544411 $XX.XX
8. This initial report covers surplus sulfur dioxide emission allowance sales
during 2010 as of the date of this filing. Contracts for sale of surplus sulfur dioxide
emission allowances entered into after the date of this filing wil be included in a
subsequent report.
Respectfully submitted this 14th day of June 2010.
Æ~i2~LISA D. NORï5~
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S INITIAL REPORT OF
PROCEEDS FROM SALES OF S02 EMISSION ALLOWANCES IN 2010 - 4