20120823final_order_no_32625.pdf

Office of the Secretary
Service Date
August 23,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR AN )CASE NO.IPC-E-12-21
ACCOUNTING ORDER REGARDING )
PURPA DELAY DAMAGES )ORDER NO.32625
On July 27,2012,Idaho Power Company filed an Application requesting an
accounting order to address damages it receives as a result of firm energy sales agreements with
small power producers.As required by the Public Utility Regulatory Policies Act of 1978
(PURPA)Idaho Power enters into energy sales agreements with qualifying facilities (QFs),
which agreements include the Company’s right to recover damages if a QF fails to perform its
contractual obligations.The Company’s Application recognizes that recovery of these damages
may occur infrequently,but when it does,Idaho Power requests authority to provide 100%of the
recovered funds to customers through the Power Cost Adjustment (PCA)mechanism.
The Company’s Application states that it currently is seeking to collect $200,000
from Yellowstone Power,Inc.as settlement of its failure to produce energy.See Case No.IPC
E-1 0-22.Similarly,in Case No.IPC-E-10-44,Idaho Power is proposing to collect damages from
Hidden Hollow Energy 2,LLC.The Application states that with the resolution of these cases by
the Commission,“the Company is compelled to seek authorization regarding the process and
accounting to flow the potential collection of these damages back to Idaho Power’s customers.”
Application,p.2.
Idaho Power proposes to record funds received as liquidated damages by debiting
either Federal Energy Regulatory Commission (FERC)Account 143 for funds to be received,or
if the funds are already on deposit with the Company,by debiting FERC Account 235 (Customer
Deposits)and crediting FERC Account 555 (Purchased Power).The Company would then debit
FERC Account 557 (Other Expenses)and credit FERC Account 182.3 (Regulatory Assets/PCA).
The affect of these entries would be a direct benefit to the Company’s customers as a reduction
in net power supply expenses reflected in the annual PCA adjustment.
Idaho Code §6 1-524 authorizes the Commission to establish a system of accounts to
be kept by public utilities and to prescribe the manner in which such accounts shall be kept.The
Commission finds that the proposed accounting for liquidated damages Idaho Power may
ORDER NO.32625 1
recover as result of sales agreements with qualifying facilities is appropriate.The Commission
determined to approve the Company’s proposed accounting treatment for these damages at its
Decision Meeting on August 20,2012.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application for an accounting order
to account for damages it receives from small energy producers is approved.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 4:&
day of August 2012.
PAUi KJELLANDE,PRESIDENT
MACK A.REDFORD,“CbMMISSIONER
ka-&JL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
I I —
Barbara Barrows
Assistant Commission Secretary
O:IPCE-1 2-2lws
ORDER NO.32625 2