28324.mod.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF PACIFICORP DBA UTAH POWER & LIGHT COMPANY FOR APPROVAL OF A NEW RENEWABLE ENERGY TARIFF, SCHEDULE 70 NEW WIND, GEOTHERMAL AND SOLAR POWER RIDER—OPTIONAL.
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CASE NO. PAC-E-00-1

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/ PROTEST DEADLINE

ORDER NO. 28324

YOU ARE HEREBY NOTIFIED that On March 10, 2000, PacifiCorp dba Utah Power & Light Company (PacifiCorp; Company) filed a Tariff Advice with the Idaho Public Utilities Commission for approval of a new renewable energy tariff, Schedule 70 New Wind, Geothermal and Solar Power Rider—Optional. The Company makes this filing pursuant to Commission Order and Company commitment in the recent merger case between PacifiCorp and ScottishPower, Case No. PACE99-1.
The proposed Schedule 70 tariff, the Company states, will allow customers who so choose to purchase blocks of energy from new renewable generation resources. The customer will choose the number of blocks to purchase, which is not dependent on the amount of energy used. Customers who participate will pay an additional $4.75 per month per 100 kWh block of renewable energy. This premium is in addition to the normal billed rate. The premium will be used to cover the costs of the program. These costs include marketing costs, program administration and the incremental cost of the new renewable energy.
For accounting purposes, the Company states that the costs associated with the program will be booked in accordance with normal FERC accounting procedures. For the purpose of earnings demonstrations (i.e., Results of Operations reports, general rate cases, etc.), a normalizing adjustment will be made to remove the revenues, program costs and above-market costs of the energy associated with the program from the revenue requirement calculation. This, the Company states, will assure that no costs are borne by non-participants.
This program, the Company states, is considered by it to be a generation program. As such, all revenues and costs will be allocated system-wide using the generation allocation factors.
The Company states that it will provide annual reports commencing October 31, 2000. The reports will include the revenues received, blocks purchased, blocks generated or contracted for, and other program costs. The annual reports will include both the 12 months ended September 30 period and the period from the program inception. The reports are intended to provide the Company, Commission and interested parties with the information necessary to assure that the program revenues are just sufficient to cover the program costs over the life of the program. After an initial two-year period, the Company states that it will review the revenues and costs associated with the program. The Company may at that time request before the Commission that the program be modified to adjust the price and/or the size of the blocks purchased to match the costs and revenues on an ongoing basis. Attached to the Company’s Application is a program description Q&A with further details. Included in the Q&A is a financial analysis of the program and an example of the program accounting.
In accordance with IDAPA 31.01.01.134, PacifiCorp requests that Schedule 70 become effective April 12, 2000.
YOU ARE FURTHER NOTIFIED that the Commission on the recommendation of Commission Staff finds it reasonable to suspend the proposed April 12, 2000, effective date so as to provide sufficient time for public comment. Reference Idaho Code §§ 61-307 and 61-623. In accordance with Commission Rules, we initiate a formal proceeding for consideration of the Company’s Application. Reference IDAPA 31.01.01.134.02.
YOU ARE FURTHER NOTIFIED that the Commission has preliminarily found that the public interest in this matter may not require a hearing to consider the issues presented and that the issues raised by the Company’s filing may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. PAC-E-00-1 is Wednesday, April 12, 2000. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission may consider the matter on its merits and may enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. PACE-00-1 should be mailed to the Commission, the Company at the addresses reflected below.

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 MATTHEW WRIGHT
VP REGULATION
PACIFICORP
825 NE MULTNOMAH STREET, SUITE 800
PORTLAND OR 97232

All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Company’s Application in Case No. PACE-00-1 may be viewed during regular business hours at the offices of the Idaho Public Utilities Commission, 472 West Washington Street, Boise, Idaho and at the Idaho offices of PacifiCorp dba Utah Power & Light Company.
O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission in Case No. PAC-E-00-1 does hereby approve the Modified Procedure schedule set out above.
IT IS FURTHER ORDERED that the Company proposed April 12, 2000 effective date for implementation of the proposed Schedule 70 renewable energy tariff be suspended until such time as the Commission may issue an Order accepting, rejecting or modifying the Application.
DATED at Boise, Idaho this day of March 2000.

DENNIS HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:PAC-E-00-1 _sw

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
ORDER NO. 28324 1

Office of the Secretary
Service Date
March 23, 2000