20140522notice_of_application_order_no_33040.pdf

Office of the Secretary
Service Date
May 22,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR AN )CASE NO.IPC-E-14-08
ACCOUNTING ORDER )
)NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33040
On May 9,2014,Idaho Power Company filed an Application seeking an accounting
order to “flow back $1,884,406.85 to customers through the [annual]Power Cost Adjustment
(“PCA”)mechanism”starting in 2015.Application at I.Idaho Power and J.R.Simplot
Company have entered into a confidential Settlement Agreement regarding the recovery of the
utility’s overpayments to Simplot.
BACKGROUND
Simplot operates a PURPA cogeneration facility at its Pocateflo plant.In February
2006,Idaho Power and Simplot entered into a Power Purchase Agreement (the “2006 PPA”)
whereby Simplot agreed to sell power to the utility over a seven-year period ending on February
28,2013.See Order No.30028,Case No.IPC-E-06-03.Under the terms of the 2006 PPA,
Simplot was generally required to deliver no less than 90%of the contracted monthly amount of
power and no more than 110%of the monthly amount (commonly referred to as the “90-110
performance band”).If Simplot’s delivery of energy was outside of the 90-110 band,then Idaho
Power was required to adjust (e.g.,lower)the payments to Simplot in those months.
THE APPLICATION
A.Settlement Agreement
Idaho Power asserts that upon termination of the 2006 PPA in February 2013,it
“discovered an overpayment [to Simplot]had occurred”during the term of the expired contract.
Application at 2.Apparently Idaho Power did not adjust the monthly payments to Simplot for
power outside the 90-110 band.The parties subsequently began discussions regarding the
recovery of the overpayments made to Simplot.Id.As a result of these discussions,Idaho
Power and Simplot entered into a confidential Settlement Agreement in February 2014.Under
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33040 1
the terms of the Settlement Agreement,Simplot agreed to repay $1,564,503.76 of the
$1,884,406.85 that was overpaid to Simplot.Id.at ¶3.Idaho Power will also repay to
customers the unrecovered balance of $319,903.09 ($1,884,406.85 -$1,564,503.76).Id.Idaho
Power proposes to record the recovery of the overpayments to customers through the annual
PCA mechanism)The utility asserts that the recovery of the overpayments “will be a direct
benefit to ...customers in the form of a reduction in net power supply expense.”Application at
The Application contains two attachments:a confidential “Settlement Agreement and
Release”;and a “Confidential Summary”2 of the Settlement Agreement.The Company
maintains that these attachments “contain information that is a trade secret,privileged or
confidential as described in Idaho Code §9-340 ci’seq.and §48-801 et seq.”See Certificate of
Attorney.The Company has indicated that the confidential attachments will be provided to
parties that have signed a Protective Agreement pursuant to Commission Rule 67.04,IDAPA
31.01.01.067.04.
B.Proposed Accounting Treatment
Idaho Power proposes to record recovery of the overpayments by debiting either the
Federal Energy Regulatory Commission (FERC)Account No.143 (Other Accounts Receivable)
for funds to be received,or by debiting FERC Account No.235 (Customer Deposits)and
crediting FERC Account No.555 (Purchased Power)if the funds are already on deposit with the
Company.
The Company has proposed,and Staff concurred,that the Application be processed
under Modified Procedure pursuant to Commission Rule 201 ci seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified
The Company’s proposed recovery of the overpayments does not affect the current PCA application before the
Commission,Case No.IPC-E-14-05.
2 The Confidential Summary describes the manner of the proposed recovery.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33040 2
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-eight (28)days from the service date of this Notice.The Company shall file a reply (if
necessary)within thirty-five (35)days from the service date of this Order,The comment
must contain a statement of reasons supporting the comment.Persons desiring a hearing must
specifically request a hearing in their written comments.Written comments concerning this
Application shall be mailed to the Commission and Idaho Power at the addresses reflected
below:
Commission Secretary Donovan E.Walker
Idaho Public Utilities Commission Julia A.Hilton
P0 Box 83720 Idaho Power Company
Boise,ID 83 720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:dwalker(,idahopower,corn
ihilton(idahopower.com
472 W.Washington Street
Boise,ID 83702-5918 Michael J.Youngblood
Regulatory Dockets
Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:myoungblood(idahopower.com
dockets(idahopower.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.pciçiahqgçy.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to Idaho Power at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33040 3
set,the Commission will consider them and,in its discretion.may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.The Application is also available on the Commission’s web site at
Click on the “File Room”tab at the top of the page,scroll down to “Open
Electric Cases,”and then click on the case number as shown on the front of this document.
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 §61-524.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 Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons shall have 28 days from the service date of this Order to file written
comments,and the Company shall have 35 days from service of this Order to file reply
comments (if any).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33040 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of May 2014
PAUL KJELLANDER,PRESIDENT
MACK A.RED7’QRD,COMMISSIONER
ATTEST:
Jean D.Jewell
Commission Secretary
ARSHA H.SMITH,COMMISSIONER
bls/O:IPC-IZ-14-08 dh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33040 5