20000721Order No 28451 mod.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF PACIFICORP FOR AN ACCOUNTING ORDER REGARDING ENHANCED EARLY RETIREMENT PROGRAM. )
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CASE NO. PAC-E-00-04

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

ORDER NO. 28451

YOU ARE HEREBY NOTIFIED that on June 13, 2000, PacifiCorp filed an Application requesting an accounting order from the Commission to capitalize and amortize over a five-year period the cost of a voluntary enhanced early retirement program and employee severance program. The Application was filed pursuant to Idaho Code ( 61-524, which authorizes the Commission to prescribe the accounting to be used by public utilities subject to the Commission’s jurisdiction.
YOU ARE FURTHER NOTIFIED that the Application states that beginning in June 2000, PacifiCorp will offer qualifying employees an early retirement option. PacifiCorp has determined that 900 employees will qualify for the retirement option and estimates for purposes of the Application that 750 employees will exercise their election to retire. The retirement program offers additional benefits to qualifying employees which result in increased retirement and other post retirement benefit expense and administration costs. PacifiCorp estimates that total program retirement costs will be $115 million and the annual benefits by year 2005 will be approximately $62 million. In order in match the benefit and costs of the retirement program, PacifiCorp proposes to capitalize the costs and to amortize these costs on a straight line basis over a five-year period, commencing from the date of the Commission’s Order.
YOU ARE FURTHER NOTIFIED that the Application also states that PacifiCorp anticipates that additional work force reductions will be needed beyond those that will be achieved through the retirement program to reach an overall target of 1600 reductions. Thus PacifiCorp also plans to implement a severance program and will file additional information regarding these programs, including the projected number of employees, the estimated severance costs and proposed accounting treatment, once the retirement plan reductions have been determined. PacifiCorp also proposes to capitalize the costs of the severance program and amortize the costs on a straight-line basis over a five-year period. PacifiCorp does not request a determination of ratemaking treatment for the retirement program or severance program, and expects any ratemaking determination would be made in the Company’s next general rate case.
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.
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-one (21) days from the date of this Notice. 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 the Applicant 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 Company’s Address
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that if no written comments 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, upon review of the filings in this case and the determination of the Commission, that PacifiCorp’s request for an Accounting Order be processed by Modified Procedure.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of July 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/PAC-E-00-04_ws

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28451 1

Office of the Secretary
Service Date
July 21, 2000