20200430Notice_of_Application_Order_No_34655.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34655 1

Office of the Secretary
Service Date
April 30, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 9, 2020, Idaho Power Company (“Company”) applied to the Commission
seeking an order (1) approving the deferral of costs associated with cloud computing arrangements
to regulatory asset, and (2) acknowledging that the unamortized regulatory asset amounts are
eligible for rate base treatment and the associated annual amortization expense is eligible for
potential recovery in a future rate proceeding. The Company requested its Application be
processed via Modified Procedure. The Commission now issues this Notice of Application and
Notice of Modified Procedure setting deadlines for public comments and the Company’s reply.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company’s information technology system
includes on-premise solutions and cloud computing. On-premise solutions are onsite products or
applications for which the Company must buy a license or copy of the software. Cloud computing
is the delivery of information technology, including servers, storage, databases, networking, and
software, over the internet. Based on accounting guidelines, the Company classifies investments
in on-premise solutions as capital expenditures and cloud computing investments as operating
expenditures, with the exception that cloud computing integration costs are capitalized.
YOU ARE FURTHER NOTIFIED that the Company states the current accounting
treatment provides a financial disincentive for it to invest in certain cloud computing arrangements.
The Company proposes to capitalize all costs associated with cost-effective cloud computing
because the cloud computing investments are “equivalent to that of a traditional on-premise
[information technology] solution.”
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission’s office. The Application is also
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR AN
ACCOUNTING ORDER FOR COSTS
ASSOCIATED WITH CLOUD COMPUTING
ARRANGEMENTS
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CASE NO. IPC-E-20-11

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34655
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34655 2

available on the Commission’s web site at www.puc.idaho.gov. Click on the “ELECTRIC” tab at
the top of the home page, then select “Open Cases” and then locate and 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. 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 31.01.01.000 et 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 that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that anyone desiring to state a position on this
Application must file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date on this Order. The comment must explain why the
person supports or opposes the Application. Persons desiring a hearing must specifically request a
hearing in their written comments. Written comments concerning this Application shall be sent
electronically, unless email is not available, to the Commission and the Company at the email
addresses reflected below:
For the Idaho PUC:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

For Idaho Power:

Lisa D. Nordstrom
Matt Larkin
1221 West Idaho St (83702)
P.O. Box 70
Boise, ID 83707
[e-mail]
[e-mail]
[e-mail]

Comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34655 3

Commission’s home page located at www.puc.idaho.gov. Click the “Consumers” tab then click
the “Case Comment Form” and complete the comment form using the case number as it appears
on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments
within twenty-eight (28) days from the service date on this Order.
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 set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so within twenty-one (21) days from the service date of this Order. The
Company must file any reply comments within twenty-eight (28) days from the service date of this
Order.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34602,
issued March 17, 2020. All pleadings should be filed with the Commission electronically and shall
be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30th
day of April 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34655 4

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

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