20140808Corrected Accounting Entries.pdf

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DONOVAN E. WALKER
LEAD COUNSEL
[e-mail]
August 8,2014
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Corrected Accounting Entries
Case No. IPC-E-14-08 - ldaho Power Company's Application for an Accounting Order
J. R. Simplot and ldaho Power Settlement Agreement
Dear Ms. Jewell:
On August 5, 2014, ldaho Power Company ("!daho Powe/') submitted accounting
entries for the Simplot overpayment pursuant to the ldaho Public Utilities Commission
("Commission") Order No. 33076 that partially granted the Company's request for an
accounting order for the recovery of overpayments made to J.R. Simplot Company ("Simplot")
with regard to their 2006 Power Purchase Agreement with ldaho Power. Subsequent to the
filing, ldaho Power found an error in the computation performed for Accounting Entry No. 2; the
Company inadvertently applied a Power Cost Adjustment ("PCA") sharing percentage of 95
percent to the ldaho customer benefit when in fact, because this is a PURPA cost, 100 percent
of the jurisdictional percentage gets passed back to customers through the PCA. ldaho Power
hereby submits the enclosed accounting entries correcting this error.
lf you have any questions regarding this filing, please contact Courtney Waites at 388-
561 2 or [e-mail].
DEW:kkt
Enclosure
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Don Howell, IPUC
Tim Tatum
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onovan E. Walker
J. R. Simplot and ldaho Power Settlement Aqreement
Gorrected Accountinq Entries
On July 16, 2014, the ldaho Public Utilities Commission ("Commission") issued Order No. 33076
approving an accounting orderforthe recovery of $1,888,406.85 in overpayments made by ldaho Power
Company ("ldaho Powe/') to the J.R. Simplot Company. The Commission found that customers should be
credited with the recovery of $1,888,406.85 ($1,564,503.76 from Simplot and $319,903.09 from ldaho
Power). ldaho Power's contributed share of the funds will be from shareholder funds, not customer funds.
ldaho Power was ordered to credit the entire amount of recovered overpayments to customers in its 2015
Power Cost Adjustment application. The following summarizes the accounting entries that will be made
regarding the overpayments:
242Misc. C&A Liab - Operations
657X00001 999242500 $ 1,884,406.85
(1)
401 Operations Expense
657 M30108 599 555070
To record the benefit to ldaho Powe/s customers
expenses. This entry will be recorded in July 2014.
$ 1,884,406.85
through a reduction to purchased power supply
(2)
401 Operations Expense
693 M30108 441 557001 $ 1,790,186.51
182.3 Other Regulatory Assets - Current Year PCA Deferral
693 X00001 999 182323 $ 1,790,186.51
To record the ldaho customer benefit of the J. R. Simplot Company Settlement Agreement after
jurisdictionalizing and sharing ($1,884,406.85.95% * 100o/o = $1,790,186.51). Thisentrywill be made in
July 2014.
401 Operations Expense
693 M30108 443 5s7003 84,798.31
(3)
182.3 Other Regulatory Assets -2014 PCAM
693 X00001 999 182384 $ 84,798.31
To record the Oregon customer benefit of the J. R. Simplot Company Settlement Agreement after
jurisdictionalizing and sharing ($1,884,406.85 * 5% * 90Vo = $84,798.3'1). This entry will be made in July
2014 if the Oregon jurisdictional yearto-date net power supply expenses fall outside the deadbands.