20050311Final Order No 29727.pdf

Office of the Secretary
Service Date
March 11 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF P ACIFICORP FOR AN ACCOUNTING
ORDER REGARDING TREATMENT OF
CERT AIN INTEREST EXPENSES
ASSOCIATED WITH P ACIFICORP'
HYDRO RELICENSING OBLIGATIONS
ORDER NO. 29727
CASE NO. P AC-O4-
On December 27, 2004 , PacifiCorp (Company) filed an Application in Case No.
P AC-04-8 with the Idaho Public Utilities Commission (Commission) requesting an accounting
order authorizing the Company to (l) defer general rate consideration of the costs associated
with the re-licensing of a number of its hydroelectric projects at this time, (2) reclassify the
interest expense, associated with the Company s various hydro relicensing obligations, as an
operating expense in FERC Account 539, Miscellaneous Hydroelectric Power Generation
Expense, and (3) to include in rate base certain intangible assets and liabilities that are associated
with its hydroelectric licensing obligations. It was PacifiCorp s belief that reclassification of the
interest expense and inclusion of certain assets and liabilities in rate base was necessary to track
and ensure appropriate regulatory recovery of the interest component that is associated with the
cash expenditures PacifiCorp is obligated to make pursuant to the relicensing orders issued by
the Federal Energy Regulatory Commission (FERC).
On February 15 , 2005, PacifiCorp filed a letter with the Commission requesting
permission to withdraw its Application in Case No. P AC-04-8. Reference IDAP A
31.01.01.068. PacifiCorp notes that as of the date of its letter, no party has intervened in the
case, nor has the Commission taken any action with respect to the Application. In its letter, the
Company notes that the impetus for the Application was a shift in Generally Accepted
Accounting Principles (GAAP) requiring the Company to treat the present value of hydro
relicensing future settlement obligations as a liability on the balance sheet, offset by an equal
intangible asset consisting of the hydro license and electricity. Since filing the Application
PacifiCorp states that it has determined that it can comply with GAAP and still continue historic
regulatory accounting for hydro relicensing obligations.
ORDER NO. 29727
Commission Findings
The Commission has reviewed the filings of record in Case No. PAC-04-
including the Company s Application and Letter request for withdrawal of Application. The
Commission finds it reasonable to authorize withdrawal of the Application and to terminate and
close the case docket.
CONCLUSIONS OF LAW
The Commission has jurisdiction over PacifiCorp dba Utah Power & Light Company,
, an electric utility, pursuant to the authority granted in Title 61 of the Idaho Code and the
Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described above, IT
HEREBY ORDERED and the Commission does hereby grant PacifiCorp s request to withdraw
its Application in Case No. P AC-04-, terminates further proceedings and closes the P AC-
04-8 case docket.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 29727
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this Dcf-/-J
day of March 2005.
PAUL KJELL
~/ j j
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~
~AA-07~
, Bar ara Barrows
Assistant Commission Secretary
bls/O:P ACE0408
ORDER NO. 29727