20031223Amendment to Application.pdf

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825 E. Mu/tnomah
Portland, Oregon 97232
[phone]
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PACIFICORP
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PACIFIC POWER UTAH POWER
December 23, 2003
Idaho Public Utilities Commission
472 West Washington
Boise, ill 83702-5983
Attention: Jean D. Jewell
Commission Secretary
Re: In The Matter ofthe Application ofPacifiCorp dba Utah Power & Light
Company for a Deferred Accounting Order
Case No. P AC-03-
First Revision of Sheet No. 93 Schedule 93 Power CostfIax Surcharge
PacifiCorp (d.a. Utah Power & Light Company) hereby submits an original and seven
copies of an amended application for deferral and recovery of Income Tax Audit related
payments, and its request for approval of its proposed Electric Service Schedule No. 93
Power CostfIax Surcharge. An electronic copy will also be provided.
The Company s proposal does not include the impact of changes in the level of the BP A
credit that are expected to occur next year.
Also provided herewith is the press release regarding the Company s application that has
been issued simultaneously with this filing pursuant to Utility Customer Information Rule
No. 102.04.
It is respectfully requested that all formal correspondence and Staff requests regarding
this material be addressed to:
By E-mail (preferred):datarequest(g2pacificorp. com
By Fax:[phone]
By regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah St., Suite 800
Portland, OR 97232
,,~
Pmud Spo",o, of the
200212004 u.S. Olymp;cTeam
Idaho Public Utilities Commission
Case No. PAC-03-
December 23, 2003
Page 2
Informal questions should be directed to Bob Lively, Manager, Regulation, (801) 220-
4052.
Sincerely,
L G.XJ 6'""-)P-J
Doug Larson
Vice President, Regulation
Enclosures
John M. Eriksson
STOEL RIvEs LLP
201 South Main Street, Suite 1100
Salt Lake City, Utah 84111
Telephone: [phone]
Facsimile [phone]
James F. Fell
STOEL RIvEs LLP
900 SW Fifth Ave., Suite 2600
Portland, OR 97204-1268
Telephone: [phone]
Facsimile: [phone]
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Attorneys for PacifiCorp
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP dba UTAH POWER &
LIGHT COMPANY FOR A DEFERRED
ACCOUNTING ORDER AND APPROVAL
OF A SURCHARGE
AMENDMENT TO APPLICATION
OF P ACIFICORP
CASE NO. P AC-03-
PacifiCorp respectfully submits this Amendment to its Application in this case.
Excess Power Purchase Costs
PacifiCorp amends its Application by removing from consideration its request for
deferred accounting of the excess costs incurred for forward power purchases made for the
summer of 2002.
Additional and Amended Information Regarding the Income Tax Audit Payments.
Like other taxpayers, PacifiCorp is subject to audits by the Internal Revenue Service
regarding the Company s payment of income taxes in past years. In previous cases, the
Commission has disallowed recovering from customers the cost of what has been referred to as a
tax cushion" to cover additional amounts that may have to be paid due to an IRS income tax
audit. g. In Re Utah Power Light Co., Case No. U-I009-151, Order No. 20372, p. 25 (April
AMENDMENT TO APPLICATION OF PACIFICORP - 1
, 1986) ("Our position on this issue has not changed. It is not proper for the Company to
accrue for an expense, such as this, that may not occur.) (Hereafter, the "1985 rate case
However, the Commission has allowed for recovery of tax payments actually made as a
result ofIRS audits of prior years ' income taxes. In its order on reconsideration in the
Company s 1985 rate case, the Commission decided that ifthe Company could show that it had
actually paid an amount to the IRS as a result of an audit, it would be allowed to submit tariffs to
recover that liability, assuming the audit assessment was not payable from a reserve already
accumulated. (Order No. 20523 , p. 10, May 29, 1986).
Shortly afterward, and following passage of the 1986 Tax Reform Act which reduced
corporate income tax rates, the Commission allowed the Company to recover the Idaho
jurisdictional portion of approximately $25 million paid in 1987 following an IRS audit of 1983
and 1984 taxes. In the Matter of the Investigation of the Effects of Revisions of the Federal
Income Tax Code Upon the Cost of Service of Regulated Utilities, Case No. U-1500-164, Order
No. 21302 (July 1 , 1987). In that case, the recovery was accomplished by deferring the rate
reduction which would have otherwise been implemented to pass on to customers the savings
resulting from the Tax Reform Act.
The audit payments which the Company seeks authority to defer in this case were not
paid from a reserve already funded by Idaho ratepayers. In the Company s 1985 rate case, the
Commission ordered the elimination of the accrual that had existed by requiring the Company to
eliminate the accrual through a rate base reduction to be amortized over five years. Specifically,
the Company was ordered to reduce its test year tax expense allocated to Idaho by approximately
$266 000 and make a reduction to rate base. The impact of the adjustments was to reduce the
Company s overall revenue requirement by approximately $713 000 annually. Order No. 20372
AMENDMENT TO APPLICATION OF P ACIFICORP - 2
pp. 24-25. Further, subsequent results of operations audits performed by the Commission Staff
have consistently excluded the impact of tax accrual.
The income tax audit payments which the Company initially included in its application
were made in July and September, 2002, during the fiscal year in which the Company filed its
Application in this case. Based on further review, the Company has revised the calculation of
PacifiCorp s responsibility for those amounts, and submits in Application Exhibit No.
2(Revised), the revised statement ofthe July and September, 2002 payments which the Company
seeks authority to defer. Further, the Company amends its Application by including in the
amount it seeks authority to defer, the Idaho-allocated share of an additional income tax audit
payment made in October 2003 following an appeal related to the same 1994-1998 audit period
described in the Application.
Request for Recovery
PacifiCorp further amends its Application to include a request for approval of proposed
Electric Service Schedule No. 93 (Proposed Schedule 93) to collect the income tax audit related
payments described in this amended Application and to address the overcollection or
undercollection of Power Costs currently being recovered under present Electric Service
Schedule No. 93 (Present Schedule 93). The Company requests that Proposed Schedule 93 be
effective immediately upon the expiration of Present Schedule 93. A copy of Proposed Schedule
93 is submitted herewith as Application Exhibit No.3. A legislative version of Proposed
Schedule 93 , showing modifications to Present Schedule 93, is attached hereto as Application
Exhibit No.
PacifiCorp s amended Application requests inclusion in Proposed Schedule 93
any overcollection or undercollection of Power Costs currently being collected under Present
AMENDMENT TO APPLICATION OF P ACIFICORP - 3
Schedule 93. Present Schedule 93 provides that, subject to Commission review and approval
the surcharge may continue at a revised rate to reflect any undercollection or overcollection of
the authorized surcharge amount. Current projections of the Power Cost collection under the
existing surcharge show an undercollection of approximately $200 000 as of June 8 , 2004 (See
Application Exhibit No.5). PacifiCorp s Proposed Schedule 93 therefore includes the projected
undercollection of Power Costs in addition to the requested collection of income tax audit related
payments. If approved by the Commission, the Power Cost undercollection of approximately
$200 000 will be revised based on current actual data prior to implementation of Proposed
Schedule 93. This revision based on updated data will likely result in a modification of the
Surcharge related to the undercollection of Power Costs. However, in the event that an
overcollection of Power Costs is determined, based on updated data, the amount would offset the
Company s requested recovery of income tax audit related payments. The Deferred Amounts
collected through the Surcharge will not include a carrying charge. Allowing recovery over the
proposed period will provide the Company recovery of the Deferred Amounts over a reasonable
period.
Proposed Schedule 93 is designed to recover from tariff customers, on a uniform
percentage basis of revenue from each rate schedule, the Deferred Amounts over a period of
approximately 16 months. Proposed Schedule 93 would be applied to customers' bills for
electric usage commencing June 8, 2004. Utilizing a test period for the twelve months ended
March 31 , 2003, Application Exhibit No.6 shows the effects of Proposed Schedule 93 by rate
schedule and a worksheet containing derivation of the cents per kilowatt-hour surcharges for
each rate schedule. For residential customers, the implementation of Proposed Schedule 93
would result in a price reduction from current prices averaging 3.3 percent. Excluding special
AMENDMENT TO APPLICATION OF PACIFICORP - 4
contracts, commercial and industrial customers would see a price reduction averaging 3.
percent. Irrigation customers would see a price reduction averaging 3.6 percent. The overall
effect on Idaho tariffed customers would be a price reduction from current levels averaging 3.
percent. If the current surcharge is allowed to expire as scheduled, June 8 , 2004, a rate decrease
of approximately 5 percent from current levels will result. (These price changes do not reflect
any impact of reductions to the levels of BP A credits that are expected to occur next year.
WHEREFORE, PacifiCorp requests that the Commission issue an Order
Approving the deferred accounting treatment requested herein
Approving the Proposed Schedule 93 described herein, and
Granting such further relief as the Commission deems necessary and proper.
DATED this M ~day of December, 2003.
Respectfully submitted
..-fohn M. Eriksson
Stoel Rives LLP
Attorneys for PacifiCorp
AMENDMENT TO APPLICATION OF PACIFICORP - 5
CERTIFICATE OF SERVICE
I hereby certify that on this d.J'!1 day of December, 2003 , I caused to be served, via
S. Mail, postage prepaid, a true and correct copy ofthe foregoing Amendment to Application
of PacifiCorp to the following:
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington
Boise, Idaho 83720-0074
Eric Olsen
Racine, Olson, Nye, Cooper & Budge
O. Box 1391
Pocatello, ID 83204
JId
Mark Tucker
Regulatory Operations Coordinator, PacifiCorp
AMENDMENT TO APPLICA nON OF ACIFICORP - 6
Case No. P AC-03-
Application Exhibit No.2 Revised
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
P ACIFICORP
Revised Statement of July and September 2002 Payments
December 2003
Application Exhibit No.2 (Revised)
PacifiCorp
2002 Federal and State Tax Audit Payments
Total Co.Idaho Alloe.Idaho Revenue
Amount Factor Amount Requirement
(000)(000)(000)
Federal Audit Payments:
July 2002 (1994-98 tax years)276 83% $799 899
Oct 2003 (1994-98 tax years)093 83% $632 018
State Audit Payments:
Sep-Nov 2002 (1994-98 tax years)618 83% $175 281
Total Audit Payments:987 605 198
Case No. PAC-03-
Application Exhibit No.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ACIFICORP
Proposed Schedule 93
December 2003
Blah
HIJYM
C. No. 28
First Revised Sheet No. 93
Canceling Original Sheet No. 93
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 93
STATE OF IDAHO
POWER COST / TAX SURCHARGE (C)
AVAILABILITY: At any point on the Company s interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the terms contained in this Tariff.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer s applicable
schedule, all monthly bills shall have applied an amount equal to the product of all metered kilowatt-hours
multiplied by the following cents per kilowatt-hour.(D)
(D)
Schedule 1
Schedule 6
Schedule 6A
Schedule 7
Schedule 7 A
Schedule 8
Schedule 9
Schedule 10
Schedule 11
Schedule 12 - Street Lighting
Schedule 12 - Traffic Signal
Schedule 19
Schedule 23
Schedule 23A
Schedule 35
Schedule 36
2569
0.1635
0.1867
7912
8219
1681
0.1232
1888
8810
0.3862
0.3002
0.2169
0.2644
0.2721
1665
0.2026
(N)
(N)
Submitted Under Docket No. P AC-03-
ISSUED: December 23 2003 EFFECTIVE: June 8, 2004
Case No. P AC-03-
Application Exhibit No.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ACIFICORP
Proposed Schedule 93 in Legislative Format
December 2003
ulah
nlJlM
C. No. 28
First Revised Sheet No. 93
Cancelin Original Sheet No. 93
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULE NO. 93
STATE OF IDAHO
POWER COST / TAX SURCHARGE
AVAILABILITY: At any point on the Company s interconnected system.
APPLICATION: This Schedule shall be applicable to all retail tariff Customers taking service
under the tenns contained in this Tariff.
MONTHLY BILL: In addition to the Monthly Charges contained in the Customer s applicable
schedule, all monthly bills shall have applied an amount equal to the product of all metered kilowatt-hours
multiplied by the following cents per kilowatt-hour as determined by the Voltage Level at which the
Customer takes service. The charges in the column labeled "Veal' I" shall be in effect for one year
beginning on the effective date of this tariff. The charges in the column labeled "Veal' 2" ~;hall be in effect
for one yea-r beginning at the end of V car 1. The Company shall trade the total amount collected through
Veal' 1 and Year :2 and true up in V car 3. In Year 3, this surcharge may continue at a revised rate, subject
to subsequent Commission re'.'ie'N and approyal, in order to reflect any undercolleetioll or overcollectioll of
the total authorized surcharge amount.
Voltage Loyel
Secondary less than 2 300 volts
Primary 2 300 to 11 000 volts
Transmission oyer 11 000 volts
8585 rf,
8326 1ft
8151 rf,
Veal' 2
1200 1ft
1073 rf,
3988
Schedule 1 0.2569 rtSchedule 6 0.1635 rtSchedule 6A 0.1867 rtSchedule 7 0.7912 rtSchedule 7A 0.8219 rtSchedule 8 0.1681 Schedule 9 0.1232 rtSchedule 10 0.1888 Schedule 11 0.8810 rt
Schedule 12-Street Lighting 0.3862
Schedule 12 -Traffic Signal 0.3002 rt
I Submitted Under GffleF-Docket No. PAC-03-
I ISSUED: June 7, 20020ecember 23,2003 EFFECTIVE: June 8, 2001~
Blah
nlJYM
C. No. 28
Schedule 19
Schedule 23
Schedule 23A
Schedule 35
Schedule 36
0.2169 rt
0.2644 rt
2721 rt
0.1665 rt
2026 rt
I Submitted Under Gffief-Docket No. p AC-03-
I ISSUED: June 7, 2002December 23,2003
First Revised Sheet No. 93
Cancelin Original Sheet No. 93
EFFECTIVE: June 8, 2001;1
Case No. P AC-03-
Application Exhibit No.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
P ACIFICORP
Projected Undercollection of Power Costs as of June 8 2004
December 2003
APPLICATION EXIllBIT NO. S
UTAH POWER-STATE OF IDAHO
ESTIMATED BALANCE OF SCHEDULE 93 AND SCHEDULE 94
JUNE 8, 2002-JUNE 7, 2004 1
SCHEDULE 93
PCS
SCHEDULE 94
RMA TOTAL
AUTHORIZED
TOTAL UNRECOVERED
$21 865 419 $643 329 $22 508 748 $22 700 000 $191 252
Note I, The estimated balance for existing Schedule 93 and Schedule 94 is the sum of actual collections between June 8, 2002 and
November 30 2003, and the forecasted collections for December \, 2003-June 7, 2004. Forecasts are based on current
Schedule 93 and Schedule 94 rates, and KWH sales for December \, 2002-June 7, 2003.
Case No. P AC-02-
Application Exhibit No.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ACIFICORP
Estimated Effect of Proposed Schedule 93
December 2003
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$2
5
$4
0
6
($
1
0
8
)
Pr
o
p
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s
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d
Sc
h

9
3

3
Pr
o
p
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s
e
d
Ne
t

R
e
v
,

(I

I
)

(1
2
)

(1
3
)
(1
1
)
/
(
(
6
)
+
(
7
)
)

(
6
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1
0
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+
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1
1
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8
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13
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)
($
8
)
($
1
0
)
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6
3
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7
)
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2
45
3
45
3
No
t
e

I

:

P
r
e
s
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n
t

R
e
v
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n
u
e

i
s

b
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r
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A

a
n
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wh
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2
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3

a
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w
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l
l

e
x
p
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r
e

o
n

J
u
n
e

7
,
2
0
0
4
,
No
t
e

2
,

P
r
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p
o
s
e
d

R
M
A

i
s

b
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e
d

o
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Y
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a
r

3

r
a
t
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c
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d
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e

9
4
,
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w
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o
n

J
u
n
e

8
, 2
0
0
4
,
No
t
e

3
,

P
r
o
p
n
s
e
d

S
c
h
,

9
3

P
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w
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r

C
o
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I
f
f
a
x

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g
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i
s

d
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s
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t
o

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r

a

t
o
t
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l

o
f
$
4
,
3
8
9
25
2

b
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t
w
e
e
n

J
u
n
e

8
,
2
0
0
4

a
n
d

S
e
p
t
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m
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e
r

1
5
,
2
0
0
5
,

T
h
i
s

a
m
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t

i
n
c
l
u
d
e
s

$
4
,
I

9
8
00
0

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f

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c
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e

t
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x

a
u
d
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t

p
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t
s
plu
s

$
1
9
1
25
2

o
f

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p
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t
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9
3
-
Po
w
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r

C
o
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t

S
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a
n
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d
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9
4
-
RM
A
T
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e

p
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n

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s

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n

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c
o
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be
t
w
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n

J
u
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e

8
,
2
0
0
2
-
No
v
e
m
b
e
r

3
0
20
0
3

a
n
d

t
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e

f
o
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d

c
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s

f
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D
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r

I
,
2
0
0
3
-
Ju
n
e

7
, 2
0
0
4
,
13
8
57
0
71
3
96
8
22
6
23
6
30
1
53
5
99
8
99
0
86
7
60
6
46
0
33
S
95
0
1,
3
0
4
II

,
64
6
57
2
40
7
88
7
48
1
15
9
03
8
63
8
52
3
03
6
15
7
36
4
24
1
16
3
20
4
66
0
83
6
21
1
85
7
83
4
73
0
69
8
$4
0
24
3
$1
1
8
12
9
$7
2
81
8
$1
2
$1
6
2
60
6
$1
1
7
29
4
($
2
5
8
)
($
2
5
8
)
14
%
14
%
00
%
14
%
14
%
3.
1
4
%
14
%
3.
1
4
%
14
%
3.
1
4
%
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%
14
%
14
%
00
%
00
%
1.8
8
%
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%
14
%
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1
4
%
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4
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2.
2
2
%
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%
$2
3
04
8
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9
56
1
$4
2
61
3
$1
7
04
5
88
9
$1
8
2
16
6
$3
7
55
6
$7
8
5
04
8
27
2
$1
0
9
$4
5
31
1
$2
3
4
$1
1
5
59
7
$7
0
28
6
$1
5
8
S1
8
$1
1
3
20
6
Pa
g
e

1

o
f

2
Ch
a
n
e
e
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4
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5
)
(1
3
)
-
(
9
)

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4
)
/
(
9
)
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29
5
)
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1
6
3
)
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1
45
8
)
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0
8
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S
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0
$2
6
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1
40
2
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6
8
)
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1
12
6
)
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1
2
6
)
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2
53
2
)
($
2
53
2
)
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9
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8
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8
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7
2
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9
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0
8
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4
08
8
)
($
4
08
8
)
5.
3
%
2.
4
%
13
,1.1
%
3.
5
%
($
1
9
)
($
7
)
($
9
)
($
5
8
)
($
6
)
24
,
20
,
24
,
25
,
24
,
($
9
9
)
24
,2.
5
%
3.
5
%
AP
P
L
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C
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.
UT
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H

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9
3

P
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N

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M
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1
2

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g
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f
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p
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d
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t
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h

9
3
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h

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3
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h

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3
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s
c
r
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p
t
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o
n
No
.
MW
h
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v
.
RM
A
Re
v
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Re
v
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n
u
e
t/
k
W
h
,
(
I
)
(2
)
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)
(4
)
(5
)
(6
)
(7
)
(8
)
(9
)
(4
)
+
(
5
)
(7
)
/
(
6
)
(7
)
/
(
3
)
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s
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d
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n
t
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l
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s
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n
t
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a
l

S
e
r
v
i
c
e
28
3
33
0
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4
29
5
($
1
14
2
)
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3
15
3
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2
8
14
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0.
2
5
6
9
Re
s
i
d
e
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t
i
a
l

O
p
t
i
o
n
a
l

T
O
O
28
7
38
3
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9
67
2
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,
1
5
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)
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8
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7
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2
14
%
0.
2
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2
6
To
t
a
l

R
e
s
i
d
e
n
t
i
a
l
57
0
71
3
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3
96
7
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2
29
7
)
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1
67
0
31
0
14
%
0.2
2
9
6
Co
m
m
e
r
c
i
a
l

&

I
n
d
u
s
t
r
i
a
l
Ge
n
e
r
a
l

S
e
r
v
i
c
e

-

L
a
r
g
e

P
o
w
e
r
30
1
53
5
$1
6
55
2
($
8
7
5
)
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5
67
7
$4
9
3
14
%
16
3
5
Ge
n
e
r
a
l

S
v
c
,

-

L
g
,

P
o
w
e
r

(
R
&
F
)
99
8
83
4
($
1
1
3
)
72
1
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4
3.
1
4
%
18
6
7
Ge
n
e
r
a
l

S
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r
v
i
c
e

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M
e
d
,

V
o
l
t
a
g
e
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0
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6
0
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1
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n
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r
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l

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c
e

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i
g
h

V
o
l
t
a
g
e
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7
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8
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9
0
)
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8
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8
14
%
12
3
2
Ir
r
i
g
a
t
i
o
n
60
6
46
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2
47
1
94
0
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6
41
1
14
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14
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18
8
8
Co
m
m
,

&

I
n
d
,

S
p
a
c
e

H
e
a
t
i
n
g
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6
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3
4
($
3
1
)
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0
3
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5
14
%
21
6
9
Ge
n
e
r
a
l

S
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r
v
i
c
e
57
2
99
5
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2
0
9
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6
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4
5
14
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6
4
4
Ge
n
e
r
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l

S
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v
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c
e

(
R
&
F
)
23
A
40
7
39
4
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6
0
)
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4
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14
%
0.
2
7
2
1
Ge
n
e
r
a
l

S
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r
v
i
c
e

O
p
t
i
o
n
a
l

T
O
O
88
7
$1
0
6
($
6
)
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0
0
3.
1
4
%
16
6
5
To
t
a
l

C
o
m
m
e
r
c
i
a
l

&

I
n
d
u
s
t
r
i
a
l
15
7
36
4
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5
40
4
34
6
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7
75
0
13
0
3.
1
4
%
18
4
1
Pu
b
l
i
c

S
t
r
e
e
t

L
i
l
!
h
t
i
n
l
!
Se
c
u
r
i
t
y

A
r
e
a

L
i
g
h
t
i
n
g
30
4
$7
6
$7
6
14
%
79
1
2
Se
c
u
r
i
t
y

A
r
e
a

L
i
g
h
t
i
n
g

(
R
&
F
)
12
9
$3
5
($
1
)
$3
4
3.
1
4
%
82
1
9
St
r
e
e
t

L
i
g
h
t
i
n
g

-

C
o
m
p
a
n
y
12
8
$3
7
($
1
)
$3
6
3.
1
4
%
88
1
0
St
r
e
e
t

L
i
g
h
t
i
n
g

-

C
u
s
t
o
m
e
r
80
8
$2
2
8
($
6
)
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2
2
3.
1
4
%
0.3
8
6
2
Tr
a
f
f
i
c

S
i
g
n
a
l

S
y
s
t
e
m
s
25
3
$2
5
($
1
)
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4
14
%
0.3
0
0
2
To
t
a
l

P
u
b
l
i
c

S
t
r
e
e
t

L
i
g
h
t
i
n
g
62
1
$4
0
1
($
9
)
$3
9
2
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2
14
%
0.4
7
0
4
To
t
a
l
s
73
0
69
8
$1
0
9
77
2
$4
0
$1
0
9
81
2
45
3
14
%
0.
1
9
9
5
No
t
e

1
:

P
r
o
p
o
s
e
d

S
c
h
e
d
u
l
e

9
3

i
s

d
e
s
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g
n
e
d

t
o

r
e
c
o
v
e
r
,
o
n

a

u
n
i
f
o
r
m

p
e
r
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n
t
a
g
e

o
f

r
e
v
e
n
u
e

b
a
s
i
s
,
a

t
o
t
a
l

o
f
$
4
38
9
35
2

b
e
t
w
e
e
n

J
u
n
e

8
,
2
0
0
4
an
d

S
e
p
t
e
m
b
e
r

1
5
20
0
5
,

T
h
i
s

a
m
o
u
n
t

i
n
c
l
u
d
e
s

$
4
19
8
00
0

o
f

i
n
c
o
m
e

t
a
x

p
a
y
m
e
n
t
s

p
l
u
s

$
1
9
1
25
2

o
f

t
h
e

p
r
o
j
e
c
t
e
d

u
n
r
e
c
o
v
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r
e
d

p
o
r
t
i
o
n

o
f

c
o
m
b
i
n
e
d
ba
l
a
n
c
e

o
f

e
x
i
s
t
i
n
g

S
c
h
e
d
u
l
e

9
3
-
Po
w
e
r

C
o
s
t

S
u
r
c
h
a
r
g
e

a
n
d

S
c
h
e
d
u
l
e

9
4
-
RM
A

T
h
e

f
i
g
u
r
e

o
f

$
3
45
3
00
0

r
e
f
l
e
c
t
s

t
h
e

a
n
n
u
a
l
i
z
e
d

a
m
o
u
n
t

t
o

b
e
co
l
l
e
c
t
e
d
,
c
o
r
r
e
s
p
o
n
d
i
n
g

a
p
p
r
o
x
i
m
a
t
e
l
y

t
o

7
9
%

o
f

t
o
t
a
L

UTAH POWER
For information, contact:
David Eskelsen 801-220-2447
Media Hotline [phone]
Tuesday, Dec. 23, 2004
Tax surcharge proposal filed
BOISE-Utah Power has proposed extending, at a reduced rate, a temporary surcharge
currently in place for Idaho customers. The reduced surcharge would recover $4.2 million
related to income tax payments for prior years, then expire in late 2005.
The company filed the proposal with the Idaho Public Utilities Commission Dec. 23. The
commission must review and approve the company s proposal for it to take effect.
If the company s request is approved, the surcharge would continue for 16 months at a
reduced rate. The effective decrease in residential rates from current levels would average
3.3 percent. For commercial and industrial customers (excluding special contracts) the
effective rate decrease would average 3.5 percent from currant rate levels; irrigation
customers, 3.6 percent. The overall effect on Idaho tariff customers would be an effective
average decrease of3.5 percent from rates currently in effect. If instead, the current
surcharge were allowed to expire as scheduled on June 8, 2004, a decrease of about 5
percent from current rates would result.
This proposal would allow the company to reduce a surcharge now in place and apply it
to a different regulatory issue " said Bob Lively, Regulation Manager. "This method will
contribute to rate stability by delaying recovery of the tax audit payments until June 2004
when the existing surcharge is scheduled to expire.
The surcharge now appears on Utah Power bills in Idaho as a separate line item, Power
Cost Surcharge. This temporary surcharge is recovering a portion of the extraordinary net
power costs incurred during the Western power crisis, when the price of purchased
electricity spiked wildly in 2000 and 2001. Under the company s proposal, the level of
the surcharge would be reduced June 8 , 2004 (the date it would otherwise expire) and
continue 16 months before expiring.
Utah Power recently resolved a series of audits by the Internal Revenue Service regarding
the company s income tax returns of prior years. The IPUC has historically not allowed
the company to include audit payments in its base rates. However, the commission has
allowed in the past, temporary recovery of tax audit payments outside of base rates.
The charges covered by this proposal concern Idaho s proportional share of tax audit
costs the company paid in July and September 2002; and in October 2003.
-more-
Utah Power
Copies of the filing are available to the public during regular business hours at the IPUC
office in Boise; and in these Utah Power offices:
25 East Main, Rexburg, ID
852 E. 1400 North, Shelley, ID
509 South 200 East, Preston, ill
24852 U.S. Highway 89, Montpelier, ID
Utah Power regulatory filings are also available via the internet at:
www.pacificorp.com
See the "News & Info" pull-down menu and select "Regulatory Iriformation" and the
appropriate state.
BP A Credit note
While not associated with the tax surcharge proposal or Utah Power s rates, changes are
expected next year in the Bonneville Power Administration Credit that would result in a
net increase on residential, farm and irrigation customer bills. The exact effect of these
changes is not yet known. However, more information should be available in January.
Utah Power serves some 57 000 customers in southeastern Idaho. As part ofthe
ScottishPower group of companies, Utah Power and Pacific Power provide electricity and
related services to 1.5 million customers in six Western states.
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