20110126order_no_32169.pdf

Office of the Secretary
Service Date
January 26 2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
ACCEPTANCE OF ITS 2011 RETIREMENT
BENEFITS PACKAGE ORDER NO. 32169
CASE NO. IPC-IO-
On October 2010, Idaho Power Company filed an Application with the
Commission requesting the Commission accept the Company s 2011 retirement benefits
package. The Company does not request recovery of additional pension plan contributions
this Application.
Last year Idaho Power requested authorization to recover in customer rates its 2010
cash contributions to the defined benefits portion of its employee retirement package. The
Commission approved the request in Order No. 31091 , but directed Idaho Power to review and
consider changes to its pension plan. Specifically, noting that Company pension payments may
total nearly $157 million during 2014-2018, the Commission stated that "it is unreasonable for
Idaho Power s customers to be solely responsible for large contributions to the Company
defined benefit pension plan." Order No. 31091 , p. 3. The Commission directed the Company
to "consider changes to its retirement plan and address shareholder and employee liabilities in
assignment of pension plan investment risk." Id. Finally, the Commission stated that it "will not
approve recovery of additional pension plan contributions from customers without evidence that
Idaho Power has carefully reviewed alternatives to reduce the burden placed on customers.Id.
On October 15, 2010, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing a 60-day period for filing written comments, followed by a 14-
day responsive comment period. The Commission Staff and the Industrial Customers of Idaho
Power (ICIP) filed comments on December 14, 2010, and Idaho Power filed responsive
comments on December 28, 2010. On December 30 2010, ICIP filed a Motion for Leave to File
Sur-Reply Comments, with the comments attached. On January 6, 2011 , Idaho Power filed a
motion to allow responsive comments to ICIP's Sur-Reply comments, and also filed its
comments in response to the Sur-Reply comments.
ORDER NO. 32169
The Commission subsequently determined to convene a workshop "to provide the
parties an opportunity to clarify statements and concerns expressed in their written comments
and provide the Commission the opportunity to ask questions to clarify the record." Notice of
Workshop, p. 2. The Notice of Workshop was issued on January 12, 2011 , and the workshop
was held on January 24, 2011. At the workshop, Idaho Power offered to provide additional
information and analysis and stated a willingness to work with Staff and ICIP to reach
agreement, if possible, on the extent of additional information and the schedule to produce it.
The Commission also clarified that the Company ability to request recovery of the
contributions it made to its pension plan in 2010 was not conditioned on completion of the
review in this case. Accordingly, the Commission issues this Order to (1) direct the parties to
discuss presentation of additional information and material to the Commission and to propose a
schedule to complete the Commission s review, and (2) clarify that Idaho Power is not precluded
from filing for recovery of 20 1 0 contributions to its pension plan before this case is completed.
ORDER
IT IS HEREBY ORDERED that the parties are directed to discuss presentation of
additional information and material to the Commission and to propose a schedule to complete the
Commission s review in this case. Idaho Power is not precluded from filing for recovery of
2010 contributions to its pension plan before this case is completed.
ORDER NO. 32169
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :1.& r.
day of January 2011.
. KEMPT , P SIDENT
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MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFORD, COMMISSIONER
ATTEST:
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COmmission Secretary
bls/O:IPC-IO-25 ws3
ORDER NO. 32169