20111108notice_of_application_order_no_32394.pdf

Office of the Secretary
Service Date
November 8,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY TO )CASE NO.IPC-E-11-22
EXTEND AND MODIFY ACCOUNTING )
ORDER TO AMORTIZE ADDITIONAL )NOTICE OF APPLICATION
ACCUMULATED DEFERRED INCOME TAX )
CREDITS (ADITC))NOTICE OF
)INTERVENTION DEADLINE
)
)NOTICE OF WORKSHOP
)
__________________________________
)ORDER NO.32394
YOU ARE HEREBY NOTIFIED that on November 2,2011,Idaho Power Company
filed an Application requesting an Order “(1)authorizing the Company to extend its ability to
amortize additional accumulated deferred investment tax credits (ADITC)through December 31,
2013,and (2)approving a one-time adjustment applied in 2011 to a sharing provision of the
stipulation approved in Order No.30978 to allow one-half of the Company’s share of the Idaho
jurisdictional return on equity (ROE)in excess of 10.5 percent to be provided as a customer
benefit in the form of a reduction in rates or an offset to amounts that would otherwise be
collected from rates.”Application,p.1.ADITC are income tax benefits the Company receives
based on the level of plant investment in previous years.ADITC is normally amortized over the
book life of the associated plant investment and is used to reduce customer income tax expense
during the amortized period.
YOU ARE FURTHER NOTIFIED that Order No.30978 was issued January 13,
2010 in Case No.IPC-E-09-30 approving a stipulation that specifies Company use of ADITC
during 2009,2010 and 2011,including a potential for revenue sharing in those years.The
stipulation approved by the Commission in Order No.30978 had three provisions regarding the
use of ADITC:(1)if the Company’s Idaho annual ROE is less than 9.5%,Idaho Power is
allowed to amortize additional ADITC up to $45 million during 2009 through 2011 to achieve an
actual ROE up to 9.5%.Any unused ADITC could be carried forward for use in a subsequent
year during the three-year period provided the amount of additional ADITC used in a single year
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ORDER NO.32394 1
did not exceed $25 million;(2)if the Idaho jurisdictional ROE exceeded 10.5%,amounts in
excess of 10.5%are shared equally between the Company and its customers;and (3)the
Company could not file a general rate case for rates to become effective prior to January 1.2012.
In 2009 and 2010,the Company’s Idaho jurisdictional ROE was between 9.5%and 10.5%,
resulting in no additional amortization of ADITC or revenue sharing.Idaho Power does not
expect to use any of the $45 million of eligible ADITC,and expects its 2011 ROE to exceed
10.5%resulting in revenue sharing for customers.Idaho Power expects the customer share of
the return in excess of 10.5%to be approximately $20 million.
YOU ARE FURTIIER NOTIFIED that Idaho Power asserts the current
ADITC/revenue sharing mechanism has proven to benefit both customers and the Company,and
the Company proposes in its Application to extend the ADITC mechanism to remain effective
through December 31,2013,under the following terms:
I.If the Idaho jurisdictional ROE is less than 9.5%,the Company proposes
to amortize additional ADITC in an amount up to $45 million over the
period of 2012-2013 to achieve an actual ROE up to a maximum of 9.5%.
The Company would be allowed to use a maximum level of $25 million in
additional ADITC amortization during 2012.
2.If the Company’s actual ROE for any year during the period 20 12-2013 is
above 9.5%,the Company would not use any additional ADITC
amortization.Unused ADITC would be carried forward for use in 2013
up to the total eligible ADITC amount of $45 million.
3.A one-time adjustment to the sharing portion of the mechanism would be
applied in 2011 to allow one-half of the Company’s share of the Idaho
jurisdictional return in excess of 10.5%to be provided as a customer
benefit in the form of a reduction in rates or an offset to amounts that
would otherwise be collected from rates.The Company expects this
sharing amount to be approximately $10 million,in addition to the
estimated $20 million the Company forecasts will be customers’share
under the existing ADITC sharing provision.For the period 20 12-2013,if
the ROE exceeds 10%,amounts in excess of a 10%return would be
shared equally between the Company and its customers.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
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ORDER NO.32394 2
testimonies are also available 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 specifically
Idaho Code §61-501.61-502,and 61-503.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 Commissions Rules of Procedure,IDAPA 3 1.01.01.000 ci seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission’s Rules of Procedure
72 and 73,IDAPA 3 1.01.01.072 and -.073.Persons intending to participate at the hearing must
file a Petition to Intervene 14 days from the service date of this Order.Persons desiring to
present their views without parties’rights of participation and cross-examination are not required
to intervene and may present their comments without prior notification to the Commission or the
parties.
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has
passed,the Commission Secretary will prepare and distribute a Notice of Parties.The
Commission anticipates that the parties will subsequently convene an informal prehearing
conference to determine the scheduling of discovery,testimony,technical hearings,and other
matters.The Notice of Parties shall also assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Idaho Power’s representatives in this matter:
Lisa D.Nordstrom Timothy F.Tatum
Jason B.Williams Idaho Power Company
Idaho Power Company P0 Box 70
P0 Box 70 Boise,Idaho 83 707-0070
Boise,ID 83707-0070 E-mail:[e-mail]
E-mail:[e-mail]
j williamsidahopower.corn
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NOTICE OF WORKSHOP
YOU ARE HEREBY NOTIFIED that a workshop has been scheduled for
WEDNESDAY,NOVEMBER 30,2011 AT 9:30 A.M.IN THE COMMISSION HEARING
ROOM,472 WEST WASHINGTON STREET,BOISE,IDAHO.The purpose of this
workshop will be for interested parties to discuss the Company’s Application.
YOU ARE FURTHER NOTIFIED that the workshop in this matter will be conducted
pursuant to the Rules of Procedure adopted by the Idaho Public Utilities Commission,IDAPA
31.01.01.000 etseq.
YOU ARE FURTHER NOTIFIED that all workshops,hearings and prehearing
conferences in this matter will be held in facilities meeting the accessibility requirements of the
Americans with Disabilities Act (ADA).Persons needing the help of a sign language interpreter
or other assistance in order to participate in or to understand testimony and argument at a public
hearing may ask the Commission to provide a sign language interpreter or other assistance at the
hearing.The request for assistance must be received at least five (5)working days before the
hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail:secretary(puc.idaho.gov
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene within 14 days from the service date of this Order.
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DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
dayofNovember2Oll.)
PAUL KJELfrAER.PRESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jan D.Jewell
Commission Secretary
bls1’O:IPQ-E-l 1-22 s
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ORDER NO.32394 5