19900831Position Statement.pdf

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MICHAL S. GILMORE
DEPUT ATTORNEY GENERA
IDAHO PUBLIC UTILITIES COMMISSION
STATEHOUSE
BOISE IDAHO 83720-0001
[phone]
STREET ADDRESS:
472 W WASHINGTON ST
BOISE IDAHO 83702-5983
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30 AUG 31 An 10 51
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U UTiES COMMISSION
Attorney for Commission Staff
BEFRE THE IDAHO PULIC UTS COMMSION
IN TH MATTR OF TH APLICATION )OF IDAHO POWER COMPAN FOR )
AUTORI TO RATE BASE TH IN. )KE REQuiD FOR TH REUl OF )TH SWAN FAL HYROELECTC )FACIL. )
)
CAS NO. IPC-E-90-2
STATE OF STAFPOSION ON LE ANJUDICTIONAL IS
The Staff of the Idaho Public Utilities Commssion makes the following
statement of position concerning the legal and jurisdictional issues presented by
Idaho Power's Application in this proceeding:
1. Idaho Power's Swan Falls Dam and hydroelectric generation facility
is an existing facility. Accordingly, Idaho Power may increase the capacity of
this existing generating plant without applying to the Commssion for a
certificate. See Idaho Code §61-526.
2. Under Idaho Code §61-526, a utility's authority to construct a
facility under a certificate or its exemption from the necessity of obtaining a
certificate to expand an existing facility gives the utility authority with regard to
construction of the project. Idaho Code §61-526 is silent about rate basing new
STATEMENT OF STAFF POSITION -1-
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construction, however, and it does not guarantee that a project authorized for
construction will be rate based. Authorizing construction and authorizing rate
basing of plant are distinct issues.
3. It is appropriate for Idaho Power to petition the Commission for a
declaratory ruling whether, in the abstract, its investment in the rebuild of the
Swan Falls plant is an appropriate investment to be rate based. See Idaho Code
§67 -5208; RP&P 15.1. The Staff believes that the Company's Application and the
uncontested need to repair the existing facility shows the necessity of
reconstructing the plant and including the investment in the plant in rate base.
4. The amount of investment in plant to be included in rate base,
however, is another issue and is not to be decded in this case. Once the plant is
in servce, the Staff proposes that the amount to be included in rate base should
be the lesser of these three figures:
(a) The plant costs reasonably incued in reconstruction of Swan
Falls;
(b) The avoided costs of Idaho Power, appropriately calculated to
take into account the difference between the Swan Falls plant's expected useful
life and the contractual commtment of a cogenerator or small power producer; or
(c) Idaho Power's proposed cap on rate base contained in its
Application.
This factual determnation should not be made in this case.
5. The Staff does not believe an evidentiary hearing is necessary to
consider the legal issues presented by the Swan Falls Application.
RESPECTFULLY submitted this 3/ day of August 1990.
J:4JLøichael S. Gilmore
Deputy Attorney General
MG:vldI-208
STATEMENT OF STAFF POSITION -2-
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CEATE OF SERCE
I HEREBY CERTIFY THAT I HAVE THIS 31ST DAY OF AUGUST,
1990, SERVED THE FOREGOING STATEME OF STAF POSION, CASE
NO. IPC-E-90-2, ON ALL PARTIES OF RECORD BY MALING A COPY
THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
LAY D. RIPLEY, ESQ.
IDAHO POWER COMPAN
P. O. BOX 70
BOISE, ID 83707
STEVEN L. HERNDON
IDAHO POWER COMPAN
P. O. BOX 70
BOISE,ID 83707
AFTON ENERGY, INC.
C/O OWEN H. ORNDORFF
ORNDORFF & PETERSON
SUITE 230
1087 W. RIVER STREET
BOISE,ID 83702
JAMES N ROETHE
PILLSBURY MAISON & SUTRO
PO BOX 7880
SAN FRACISCO CA 94120
1CERT/120
GRA E. TANER, ESQ.
DAVIS, WRIGHT, TRMANE
1300 SW FIFTH AVE SUITE 2300
PORTLAD, OR 97201
PETER J. RICHADSON, ESQ.
DAVIS, WRIGHT, TREMANE
400 JEFFERSON PLACE
350 N. NINT STRET
BOISE, ID 83702
HAOLD C. MILES, CHARM
IDAHO CONSUMER AFFAIRS INC
316 FIFTENTH AVENUE SOUTH
NAMPA, ID 83651
R. MICHAL SOUTHCOMBE
CLEMONS COSHO & HUMPHREY
815 W WASIDNGTON
BOISE ID 83702
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