20140509Application.pdf

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DONOVAN E. WALKER
Lead Counsel
[e-mail]
May 9, 2014
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VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-14-08
J. R. Simplot Accounting Order - ldaho Power Company's Application
Dear Ms. Jewell:
Enclosed for filing please find an original and seven (7) copies of ldaho Power
Company's Application in the above matter.
Also enclosed in separate envelopes are an original and seven (7) copies each
of confidential Attachments 1 and 2 to the Application. A proposed Protective
Agreement is provided for execution by the appropriate ldaho Public Utilities
Commission Staff attorney. Please handle the confidential information in accordance
with the Protective Agreement ldaho Power Company requests be executed in this
matter.
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Enclosures
1221 W. ldaho 5t. (83702)
PO. Box 70
Boise, lD 83707
[,an E. Walker
DONOVAN E. WALKER (!SB No. 5921)
JULIA A. HILTON (lSB No. 7740)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwal ker@ idahopower.com
ih ilton@ idahopower. com
Attomeys for ldaho Power Company
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BEFORE THE IDAHO PUBLIC UTILIT!ES COMMISSION
rN THE MATTER OF THE APPLICATION )
oF IDAHO POWER COMPANY FOR AN ) CASE NO. IPC-E-14-08
ACCOUNTING ORDER.)) APPLTCATTON
)
ldaho Power Company ("ldaho Powe/' or "Company"), in accordance with the
provisions of ldaho Code S 61-524, RP 052, and RP 201, et seg., hereby applies for an
accounting order of the ldaho Public Utilities Commission ("Commission") for authority
to flow back $1,884,406.85 to customers through the Power Cost Adjustment (.PCA')
mechanism. These funds were overpaid to the J. R. Simplot Company ("Simplot"), a
Qualifying Facility ('QF') under a Public Utility Regulatory Policies Act of 1978
('PURPA") contract, and were previously collected from customers through the PCA.
This Application is based on the following:
APPLICATION - 1
I. BACKGROUND
1. Under PURPA, ldaho Power is obligated to enter into Firm Energy Sales
Agreements ("FESA" or "Agreement") with QFs, which Agreements must be approved
by the Commission. Upon termination of its FESA with Simplot, ldaho Power
discovered an overpayment had occurred.
2. ldaho Power notified Simplot of the overpayment and began discussions
to determine the appropriate return to customers of overpayments made to Simplot.
ldaho Power has quantified the overpayment to Simplot at $1,884,406.85
3. ln order to reach a fair and reasonable resolution of the issues, ldaho
Power and Simplot entered into a Settlement Agreement to provide for collection of the
overpayment amount. The Settlement Agreement, which calls for Simplot to repay
$1,564,503.76 of the $1,884,406.85, is being provided as Attachment 1 to this
Application under separate cover in accordance with the Commission's rules on the
handling of confidential information. ldaho Power will repay to customers the remaining
$319,903.09.
4. Additional details regarding the overpayment and Settlement Agreement
are set forth in Attachment 2 to this Application. The confidential Attachment 2 is
provided under separate cover in accordance with the Commission's rules on the
handling of confidential information.
5. Based upon the information contained in confidential Attachments 1 and 2
to this Application, ldaho Power respectfully requests that the Commission issue an
accounting order authorizing the Company to flow back the overpayment, with
APPLICATION.2
$1,564,503.76 recovered from Simplot and $319,903.09 reimbursed by ldaho Power, as
explained in Attachment2, to customers through the PCA mechanism.
II. PROPOSED ACCOUNTING ENTRIES
6. ldaho Power proposes to record the overpayment by debiting either
Federal Energy Regulatory Commission ('FERC") Account 143 (Other Accounts
Receivable) 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 record the same amount
debiting FERC Account 557 (Other Expenses) and crediting FERC Account 182.3
(Regulatory AsseUPCA). The effect of these entries will be a direct benefit to the
Company's customers in the form of a reduction in net power supply expense.
III. MODIFIED PROCEDURE
7. The Company requests that this Application be processed under RP 201,
ef seg., allowing for consideration of issues to be processed under Modified Procedure;
i.e., by written submissions rather than by an evidentiary hearing.
IV. SERVICE OF PLEADINGS
8. Service of pleadings, exhibits, orders, and other documents relating to this
proceeding should be served on the following:
Donovan E. Walker
Julia A. Hilton
ldaho Power Company
P.O. Box 70
Boise, ldaho 83707
Michael J. Youngblood
Regulatory Dockets
ldaho Power Company
P.O. Box 70
Boise, ldaho 83707
[e-mail] [e-mail]
[e-mail] [e-mail]
APPLICATION - 3
V. CONCLUSION
9. ldaho Power believes that this is a fair and reasonable resolution of the
issues herein, that it fully compensates customers for the overpayment, that this
resolution is in the public interest, and respectfully asks the Commission to approve the
accounting requested in this application to flow back overpaid funds to customers as
described in greater detail above.
Respectfully submitted this gth day of May 2014.
Attorney for ldaho Power Company
APPLICATION - 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the th day of May 2014 I served a true and conect
copy of the within and foregoing APPLICATION upon the followlng named parties by the
method indicated below, and addressed to the following:
J. R. Simplot Company
Don Sturtevant, P.E.
J. R. Simplot Company
One Capital Center
999 Main Street
P.O. Box 27
Boise, ldaho 83707 -0027
Hand DeliveredX U.S. Mail
_Ovemight Mail
FAX
Email [e-mail]
APPLICATION - 5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-14-09
IDAHO POWER COMPANY
ATTACHMENT 1
THIS ATTACHMENT IS
CONFIDENTIAL
AND WI LL BE PROVIDED
TO THOSE PARTIES THAT
HAVE SIGNED THE
PROTECTIVE
AGREEMENT
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC.E.14.O8
IDAHO POWER COMPANY
ATTACHMENT 2
THIS ATTAGHMENT IS
GONFIDENTIAL
AND WI LL BE PROVIDED
TO THOSE PARTIES THAT
HAVE SIGNED THE
PROTEGTIVE
AGREEMENT