20111220final_order_no_32418.pdf

Office of the Secretary
Service Date
December 20.201!
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S PETITION FOR AN )CASE NOS.IPC-E-1 1-21
ACCOUTING ORDER TO ESTABLISH )
RATEMAKING TREATMENT OF )
QUALIFYING REPORTING ENTITY )ORDER NO.32418
CONTRACTS )
On October 31,2011,Idaho Power Company filed a Petition requesting a
Commission Order authorizing the Company to continue to provide,with modifications,
qualified reporting entity (QRE)services as approved by the Commission in Order No.30941
issued November 5,2009.QRE services are reporting and accounting services for renewable
energy credits (RECs)through an independent inventory tracking system called the Western
Renewable Electricity Generation Information System (WREGIS).The tracking system is
designed to ensure that (1)only one REC is created for each megawatt-hour generated from a
qualifying renewable energy project,(2)each individual REC is only used for one purpose,and
(3)both the generation units creating RECs and users of the RECs communicate specific REC
requirements.The WREGIS system does not track the financial value of the RECs but instead
tracks the creation and disposition of the individual REC certificates.
The tracking system was established at the Western Electricity Coordinating Council
(WECC)at the request of state and industry stakeholders.The WREGIS process requires that a
party,independent from the owner of the renewable generation unit,supply WREGIS with the
actual monthly megawatt-hour that a renewable generation unit has delivered.Idaho Power has
been approved as a QRE by the WREGIS administrator.
Idaho Power’s status as a QRE results from a case resolved by the Oregon Public
Utilities Commission in 2009.The Oregon Commission approved a memorandum of
understanding between its staff and several utility companies in which the utilities agreed to
voluntarily provide QRE services for approximately two years so long as the cost to provide the
services was fully compensated by the party requesting the QRE service.Following resolution
of the Oregon case,Idaho Power filed a request with this Commission requesting approval of
accounting and ratemaking treatment of expenses and revenues associated with providing QRE
services as set forth in the agreement approved by the Oregon Commission.On November 5,
ORDER NO.32418
2009,the Commission issued an accounting Order approving the Company’s proposed
accounting and ratemaking processes through the two-year review period established in Oregon.
The Commission also directed the Company to file an analytical report on the QRE services to
facilitate review of the proper ratemaking treatment for those services.The Company’s
analytical report is attached to the Petition in this case.
Idaho Power in its Petition requests the Commission authorize the Company to
continue for an indefinite period of time the accounting and ratemaking treatment for its QRE
services.The Petition states that as of September 30,2011,Idaho Power has 26 client contracts,
25 for generator plants in Idaho and one for a generator plant in Oregon.The Company requests
approval to continue the processes for QRE services indefinitely with the following conditions:
(a)Idaho Power will notify the Commission and all entities using QRE services of its intent to
discontinue providing voluntary QRE service 90 days in advance of the proposed
discontinuance;and (b)Idaho Power will provide data regarding QRE service,subject to
protection of confidential information,if requested by the Commission.These conditions have
been approved by the Oregon Commission.
On November 18,2011,the Commission issued a Notice of Filing and Notice of
Modified Procedure,establishing a period through December 9,2011,for interested parties to
file written comments on Idaho Power’s Application.Written comments were filed only by the
Commission Staff.
On March 15,2011,interested parties met as part of the case before the Oregon
Commission to review the success of the voluntary program.Costs to provide the reporting
services were near what was anticipated and the reporting entities stated the services did not add
significantly to their workload at current usage.The Parties agreed the provision of QRE
services on a voluntary basis was successful during the last two years,and agreed to continue the
status quo and close the Oregon docket with the two conditions identified above.In its
comments,Staff stated that the accounting and ratemaking process has worked as anticipated.
Actual costs are recorded to work orders.The average work order costs are used to establish the
fees charged clients.Once the program was established,the average cost declined and rates
charged were reduced.Idaho Power reviews the average cost each January and updates the fees
the following March.The fees charged covered the actual costs incurred during the two-year
review period so rates were not affected by the program.
ORDER NO.32418 2
On the record in this case,the Commission finds that the QRE processes are
reasonable and should be continued.Accordingly,the Commission issues this Accounting Order
approving Idaho Power’s request to authorize the Company to continue the accounting and
ratemaking treatment for QRE services for an indefinite period,with the following conditions:
(a)Idaho Power will notify the Commission and all entities using QRE services of its intent to
discontinue providing voluntary QRE service at least 90 days in advance of the proposed
discontinuance;and (b)Idaho Power will provide data regarding QRE service,subject to
protection of confidential information,if requested by the Commission.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company’s Petition for an Accounting
Order authorizing the Company to continue the accounting and ratemaking treatment for QRE
services for an indefinite period,is approved with the following conditions:(a)Idaho Power will
notify the Commission and all entities using QRE services of its intent to discontinue providing
voluntary QRE service at least 90 days in advance of the proposed discontinuance;and (b)Idaho
Power will provide data regarding QRE service,subject to protection of confidential information,
if requested by the Commission.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
ORDERNO.32418 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2011.
PAUL KJE LiD ,PRESIDENT-
ATTEST:
7;
J4n D.JewU
Commission Secretary
bls/O:IPC-E-1 1-2 Iws2
ORDERNO,32418 4
MACK A.REDFORD,COMMISSIONER
kA
MARSHA H.SMITH,COMMISSIONER