19900919Reply Statement.pdf

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MICHAL S. GILMORE
DEPUTY ATTORNEY GENERA
IDAHO PUBLIC UTILITIES COMMISSION
STATEHOUSE
BOISE ID 83720-0001
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Street Address for Exp.: ress Mail:
472 W WASHINGTON
BOISE ID 83702-5983
Attorney for Commission Staff
BEFORE 'IHE IDAHO PUBUC UT COMMSSION
IN TH MNrl'E OF TH APLICATION )
OF IDAHO POWE COMPAN FOR AUT- )ORI TO llTEAB TH IN )
REQUID FOR TH llBUl OF TH )SWAN FAL HYROELCTC FACIL )
)
CAS NO. 1PE-902
REPLY STATEOF STAF ON LEALAN JUSDICTONAISS
The Staff of the Idaho Public Utilities Commission submits the
following reply statement concerning the legal and jurisdictional issues
presented by Idaho Power's Application in this proceeding:
1. The Staffs initial statement said that Idaho Power Company was
entitled to a declaratory ruling that, in the abstract, its investment in the rebuild
of the Swan Falls plant is an appropriate investment to be ratebased. Staff
stands by that position.
2. Staff further stated that the amount of investment in plant to be
included in ratebase, however, was an issue that need not be decided in this
case. Then, Staff commented that if the amount were at issue, then the figure to
be ratebased would be the lesser of three figues:
(a) Plant costs reasonably incurred in construction of Swan Falls;
REPLY STATEMENT OF STATEMENT
OF STAFF ON LEGAL ANDJURISDICTIONAL ISSUES -1-
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(b) Idaho Power's avoided costs, 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.
3. In response to Idaho Power's comments, Staff reiterates its position
that the amount of plant to be included in ratebase is not at issue and should not
be decded in this case. However, Staff modifies its previous three possibilities
for ratebasing in two regards:
(a) Staff believes it may be reasonable to recognize a value inthe Swan Falls plant and the water rights associated with the
plant that exceeds the strict avoided cost of a stand-alone
cogeneration or small power production facility because ofSwan Falls' and its water rights' importance to other
Company projects.
(b) The $80,285,00 total commitment estimate contained inAttachment 3 to the Supplement to Idaho Power's Initial
Application might need to be adjusted, as noted by footnote 2
of that Application, to take into account that removal costs of
$804,000 were excluded from the commtment estimate.
Nevertheless, the Staff reiterates that determining the method to be used in
ratebasing the plant or the amount of ratebasing of the plant are not issues in
this proceeding. The reason for mentioning them in this proceeding is so that the
Company will be aware that there may be more than one theory to determne
appropriate ratebasing of the plant and there will be no surprise when it
requests ratebasing of the plant if a theory other than that proposed by Idaho
Power in its own Application is put forward by another party and accepted by the
Commission.
REPLY STATEMENT OF STATEMENT
OF STAFF ON LEGAL AND
JURISDICTIONAL ISSUES -2-
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RESPECTFULLY submitted this )1)! day of September 1990.
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MichaelS Gfii
Deputy Attorney General
MG:nhI-222
REPLY STATEMENT OF STATEMENT
OF STAFF ON LEGAL ANDJURISDICTIONAL ISSUES -3-
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CEATE OF SEVICE
I HEREBY CERTIFY THAT on this ~ay of September 1990, a true
and correct copy of the Reply Statement of Staff on Legal and Jurisdictional
Issues in Case No. IPC-E-90-2 was mailed in the United States Mail, postge
prepaid, to each of the following:
LARRY 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
ORNORFF & PETERSON
SUITE 2301087 W. RIR STREET
BOISE, ID 83702
JAMES N ROETHE
PILLSBURY MADISON & SUTRO
POBOX 7880
SAN FRACISCO CA 94120
1CERT/120
GRA E. TANER, ESQ.
DAVIS, WRIGHT, TREMANE
1300 SW FIFTH AVE SUITE 2300
PORTLAN, OR 97201
PETER J. RICHADSON, ESQ.
DAVIS, WRIGHT, TREMANE
400 JEFFERSON PLACE
350 N. NINTH STREET
BOISE, ID 83702
HAOLD C. MILES, CHA
IDAHO CONSUMER AFFAIRS INC
316 FIFTENTH AVENUE SOUTH
NAMPA, ID 83651
R. MICHAL SOUTHCOMBE
CLEMONS COBHO & HUPHREY
815 W WASHINGTON
BOISE ID 83702
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REPLY STATEMENT OF STATEMENT
OF STAFF ON LEGAL ANDJURISDICTIONAL ISSUES -4-