20030325Notice of Settlement Discussions.pdf

Office of the Secretary
Service Date
March 25 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
ACIFICORP FOR AN ORDER AUTHORIZING
A CHANGE IN DEPRECIATION RATES
APPLICABLE TO ELECTRIC PROPERTY
CASE NO. P AC-O2-
NOTICE OF INTERVENTION
DEADLINE
NOTICE OF STAFF INTENT TO
ENGAGE IN SETTLEMENT
DISCUSSIONS
On October 1 , 2002, PacifiCorp dba Utah Power & Light Company (PacifiCorp;
Company) filed an Application with the Idaho Public Utilities Commission (Commission)
seeking an Order authorizing a change in the depreciation rates applicable to PacifiCorp
depreciable electric property. This change, the Company states, is for accounting purposes only.
PacifiCorp intends to seek approval of the requested changes for ratemaking purposes in a future
rate case. Pursuant to Idaho Code ~ 61-525, the Commission is empowered to determine the
proper depreciation rates of property used to provide retail electric service.
THE APPLICATION
The accounting changes proposed in the Application are supported by a Depreciation
Study ("D&T Study ) prepared by Deloitte & Touche LLP. The purpose ofthe D&T Study was
to identify the changes that have occurred since the last PacifiCorp depreciation study, to
measure the effect of the changes on the recovery of presently surviving capital, and to properly
revise the capital recovery rate. If approved, the proposed depreciation rate changes will
decrease the annual depreciation expense by $732 000 on a total Company basis. The composite
depreciation rate of 3.11 % for the Company s electric plant will not change. Based on
depreciable plant balances as of March 31, 2002, the proposed changes specific to the Idaho
jurisdiction would increase the depreciation expense by approximately $612 0000.
On November 8, 2002, the Commission issued a Notice of Application in Case
No. P AC-02-5. The Notice contained the following language:
In order to efficiently review the Application, Staff recommends that the
Commission wait to establish further procedure for processing this case
NOTICE OF INTERVENTION DEADLINE
NOTICE OF STAFF INTENT TO ENGAGE
IN SETTLEMENT DISCUSSIONS
until the depreciation rate issue is more fully developed at the multi-state
level. The Commission has been apprised that this proposed procedure is
acceptable to the Company.
YOU ARE HEREBY NOTIFIED that since November 2002 multi-state discussions
regarding the proposed change in PacifiCorp depreciated rates have continued. Commission
Staff has reviewed the depreciation study and identified issues. Staff informs the Commission
that the Company and parties in Utah have agreed in principal to the terms of a proposed
settlement. Staff has sat in on some of the discussions and believes that it is now appropriate to
provide further notice of procedure in the Company s Idaho jurisdiction. Staff recommends that
the Commission establish a deadline for intervention and further apprises the Commission of
Staff s intent to schedule a public workshop, once interested parties are identified, to engage in
active settlement discussions. Reference Rule 272 Commission Rules of Procedure, IDAP A
31.01.01.272.
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case
No. PAC-02-05 for the purpose of becoming a party, i., to present evidence, to acquire the
rights of cross-examination, to participate in settlement or negotiation conferences, and to make
and argue motions must file a Petition to Intervene with the Commission pursuant to Rules of
Procedure 72 and 73 of the Commission s Rules of Procedure, IDAP A 31.01.01.072 and -073.
The deadline for filing Petitions to Intervene in this case is Friday, April 11, 2003.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without parties ' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that the Commission has been apprised by
Commission Staff of Staff s intent to engage in active settlement discussions in Case
No. P AC-02-5. IDAP 31.01.01.272. Pursuant to Rule 276 of the Commission s Rules of
Procedure, the Commission is not bound by settlements. The Commission will independently
review any settlement proposed to it to determine whether the settlement is just, fair and
reasonable, in the public interest, or otherwise in accordance with law or regulatory policy.
YOU ARE FURTHER NOTIFIED that discovery is available in Case
No. PAC-02-5 pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.221-234.
PacifiCorp requests that all data requests to the Company regarding this matter be sent to:
NOTICE OF INTERVENTION DEADLINE
NOTICE OF STAFF INTENT TO ENGAGE
IN SETTLEMENT DISCUSSIONS
Bye-mail (preferred): datarequest(iJ),PacifiCorp.com
By facsimile: [phone]
By mail: Data Request Response Center
PacifiCorp
825 NE Multnomah, Ste. 800
Portland, OR 97232
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61.All
proceedings in this matter will be conducted pursuant to the Commission s Rules of Procedure
IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings, workshops and settlement
discussions in this matter will be held in facilities meeting the accessibility requirements of the
Americans with Disabilities Act (ADA). Persons needing the help of a sign language interpreter
or other assistance in order to participate in or to understand testimony and argument at a public
hearing may ask the Commission to provide a sign language interpreter or other assistance at the
hearing. The request for assistance must be received at least five (5) working days before the
hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretary(iJ),puc. state.id. us
YOU ARE FURTHER NOTIFIED that all communications with reference to this
Application should be served upon the Commission and the following representatives of
PacifiCorp.
NOTICE OF INTERVENTION DEADLINE
NOTICE OF STAFF INTENT TO ENGAGE
IN SETTLEMENT DISCUSSIONS
Street Address for Express Mail:
D. DOUGLAS LARSON, VICE PRESIDENT-
REGULATION
P ACIFICORP
201 SOUTH MAIN STREET, STE. 2300
SALT LAKE CITY, UT 84140
Doug.1arsoll(ll),P acifi Corp. com
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
472 W WASHINGTON ST
BOISE, ID 83702-5983
JAMES C. PAINE
STOEL RIVES, LLP
900 SW 5TH AVE., STE. 2600
PORTLAND, OR 97204-1268
i cpaine(ll),stoel. com
All communications should contain the case caption and case number shown on the first page of
this document.
Persons desiring to submit comments via e-mail in this case may do so by accessing
the Commission s home page located at www.puc.state.id.Click the "Comments and
Questions" icon, and complete the comment form, using the case number as it appears on the
front of this document. These comments must also be sent to the Applicant at the e-mail
address( es) listed above.
YOU ARE FURTHER NOTIFIED that the Application in Case No. P AC-02-5 can
be reviewed at the Commission s office and at the Idaho offices of PacifiCorp in Rexburg,
Preston, Shelley and Montpelier during regular business hours. The Application and testimonies
(excluding exhibits) are also available on the Commission s Website at www.puc.state.id.
under "File Room.
DATED at Boise, Idaho this J..
"fIo. day of March 2003.
Vld/N:PACEO205 sw2
NOTICE OF INTERVENTION DEADLINE
NOTICE OF STAFF INTENT TO ENGAGE
IN SETTLEMENT DISCUSSIONS