20010406Order No 28700.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
PACIFICORP FOR A DEFERRED ACCOUNTING ORDER. )
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) CASE NO. PAC-E-01-2

ORDER NO. 28700

On February 8, 2001, PacifiCorp dba Utah Power & Light Company (“PacifiCorp”) filed its Application, pursuant to Idaho Code § 61-524, for a deferred accounting order. PacifiCorp requests Commission authorization for an accounting order so that it may defer the costs associated with its Trail Mountain Mine. Specifically, PacifiCorp seeks authorization to defer approximately $27.1 million that reflects the Company’s unrecovered investment in the Trail Mountain Mine. PacifiCorp expects production at this mine will cease by mid-March 2001.
On March 5, 2001, the Commission issued the Notice of Application and Notice of Modified Procedure which established comment and reply comment deadlines. Order No. 28657 at 2. The Commission Staff was the only party to file comments.
PACIFICORP’S APPLICATION
PacifiCorp contends that deferred accounting treatment is an appropriate, just and reasonable means of providing the Company an opportunity to seek recovery of the mine closure costs it will incur. Thus, PacifiCorp proposes to defer these costs for later rate treatment consideration. The Company also asks the Commission to find that use of a five-year time frame would be a reasonable amortization period for the Trail Mountain Mine costs.
STAFF RECOMMENDATION
Staff recommended in its Comments that the Company be allowed to defer the mine closure costs and unrecovered investment in the Trail Mountain Mine in separate subaccounts. However, Staff recommends conducting a prudency review to assess PacifiCorp’s decisions related to the mine, purchase of the mines, (i.e., purchase of the mine, operating decisions.)
Staff also accepts the five-year amortization as requested. Additionally, Staff recommends that the amortization begin immediately when the deferral is established.

COMMISSION FINDINGS
After review of the record in this case the Commission shall allow PacifiCorp to defer the mine closure costs and unrecovered investment in the Trail Mountain Mine in separate subaccounts.
The Commission also finds that PacifiCorp shall be allowed to use a five-year amortization of this asset as requested. Additionally, the Commission finds that this amortization shall begin immediately when the deferral is established.
O R D E R
IT IS HEREBY ORDERED that PacifiCorp’s Application to defer the mine closure costs and unrecovered investment in the Trail Mountain Mine is approved.
IT IS FURTHER ORDERED that PacifiCorp shall track these costs in separate subaccounts.
IT IS FURTHER ORDERED that the costs resulting from this deferral shall be amortized over a five-year period to begin immediately when the deferral is established.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory Orders previously issued in this Case No. PAC-E-01-2 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. PAC-E-01-2. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of April 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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ORDER NO. 28700 1

Office of the Secretary
Service Date
April 6, 2001