19981230_1.docx

MINUTES OF DECISION MEETING
DECEMBER 30, 1998 - 1:30 P.M.
In attendance were Commissioners Dennis Hansen, Ralph Nelson and Marsha H. Smith and staff members Scott Woodbury, Brad Purdy, Birdelle Brown, Rita Scott, Tonya Clark, Stephanie Miller, Bill Eastlake, Doug Cooley, Rick Sterling, Lynn Anderson and Myrna Walters. Also in attendance were Bart Kline and Greg Said of Idaho Power company and Peter Richardson, Attorney at Law.
Items from the published December 30, 1998 Agenda were discussed and acted upon as recorded herein.
Commission President Hansen called the meeting to order.
First order of business was approval of the December 14 and December 21, 1998 Decision Meeting Minutes that had previously circulated to the Commissioners and corrections had been made.
Commissioner Hansen made a motion to approve said minutes; vote taken; carried unanimously.
Next to be considered was Item 2 on the Consent Agenda.
Commissioner Nelson made a motion to approve all five matters listed on Weldon Stutzman’s Decision Memorandum. Vote taken; motion carried unanimously.
Next to be considered were the three items on the Matters in Progress portion of the agenda.
3. Brad Purdy’s December 15, 1998 Decision Memorandum re: Case No. IPC-E-98-12--Idaho Power’s Application for Funding and Recovery of Expenditures Related to Northwest Energy Efficiency Alliance. (Held from 12-21-98 Decision Meeting); and Brad Purdy’s December 28, 1998 Addendum to December 15, 1998 Decision Memorandum in this matter.
After reviewing the matter, Brad indicated that there were three decisions to be made:
(1) Is a hearing necessary?
(2) If not, should Idaho Power company be allowed the recovery of NEEA payments and if so, how much should be ‘97, or ‘98 or both and (3) should they be allowed to recover these through offset of revenue sharing?
Commissioner Hansen asked if there were questions or comments? Said he would comment first - thought from the very first one of the major concerns the Commission had was that the investments and expenditures be prudent and cost effective before any recovery would be granted. Main reason was to protect ratepayers by assuring that these investments were prudent and that once we were assured of that we would allow these programs - to allow the costs. Said to him it is impossible to reach any conclusion about NEEA now because it is impossible to make findings about the programs planned or just implemented. To him it was too early to judge.  Doesn’t fault Idaho Power but didn’t think there was the information out that for an evaluation to rule on this. In the future, think that Idaho Power needs to make a more independent evaluation of this. Thought there was too much reliance on NEEA staff on whether these programs would be cost-effective. Brings him to a question of staff - why does staff support the 1997 recovery when there is not much that has been established to show Prudence in those costs? Asked for a staff person to respond.
Lynn Anderson came forward. Said basically the staff used ‘97 as a start-up year for NEEA and at the time supported the concept of NEEA. Commission supported the concept and the Governor also supported it. The costs were not that much for ‘97. There is nothing he could see in the future that can show that ‘97 costs were prudent and could be expected to result in some cost-effective programs in the future.
Commissioner Hansen asked if the Commission granted ‘97, it wouldn’t be a precedence to granting that in the future?
Lynn Anderson said that was correct.
Commissioner Hansen asked Idaho Power to respond.
Bart Kline of Idaho Power came forward.
Commissioner Hansen asked - if the costs are not that great yet, why is Idaho Power in such a hurry to recover a portion of ‘97 and ‘98 before the year is completed and some of the projects are still in the planning stage? Why is there such an emergency?
Bart replied he thought there were a couple of things that would be responsive. When Idaho Power first came in with the concept of going into NEEA, it was the Company’s assumption that the Commission approved the concept and expressed concerns of building up large amounts to be amortized later. Company said unless it knew there was going to be funding, then it wasn’t very interested in participating. Think that is why the Company is coming in today. Since they are long term projects, company would have to wait 7/10 years to see if they are prudent. The Company is not very willing to take that risk.
Commissioner Nelson commented that unless he was mistaken it is a three-year period.
Bart Kline agreed that was correct.
Commissioner Nelson said he didn’t think the Commission had enough information on ‘98 or ‘99 to know whether there is any controversy and would want a hearing. Would like to put off that decision. Didn’t think he was in a position yet to have an opinion on ‘98. But did think the ‘97 amount was really small; those are start-up expenses. He was satisfied on those amounts and would approve writing off ‘97 against the over-earnings but didn’t think he was ready to consider ‘98 or ‘99.
Commissioner Smith said she just wanted to make a couple of comments to support this as the way to go. Her decision to allow Idaho Power Company to eliminate its own company-specific programs was based on supporting participation in NEEA and making it a viable force in the region. She wants the company to also show NEEA benefits. Would hope the company participation would cause some tangible benefits to come to Idaho for the basis for asking for ‘98 and beyond amounts. Said she was in the same position as Commissioner Nelson, thought ‘97 was a start-up year. Think you have to pour some water in the pump now, that is the primer. Think that is appropriate. Said she was anxious to get the monies recovered as soon as they are shown to be prudent and reasonable. Don’t like to see those accumulate. Would also point out that we allowed WWP to recover expenses and would like to treat Idaho Power fairly.
Bart Kline asked how long would the commission anticipate a decision for ‘98 should be deferred?
Commissioner Nelson responded - Commission would need enough experience or evidence that if the staff and customers feel strongly enough that they question the program and want a hearing, the Commission would have enough information to give them.
Bart Kline said the company had made a decision that unless the company had some indication from the Commission that we would be able to recover these on an on-going basis, we would look real hard at continued participation. Company has decided to withhold ‘98 funding until it knew what the Commission had in mind.
Commissioner Hansen said he was not so interested in the outcome of the projects but think the Commission should be able to determine that they are making wise decisions and Idaho is recovering some of the benefits. For instance, if on irrigation, the Company would come in and say this will benefit Idaho, then he would start to be convinced that NEEA is doing something for Idaho. Spoke to some of the programs. Want to see a benefit for Idaho customers. It may take years, but Idaho Power has to say this will benefit our people. Think the Commission’s concerns are that we are not treated like BPA treats Idaho. Want to make sure that some benefit it coming back. If Idaho Power sees in 3/6 months that this can be shown to benefit Idaho customers, he would be ready to sit down and discuss it.
Commissioner Smith said when the company thinks they have an adequate case, think a hearing will be needed. When the company is ready --time-wise, she can’t say when that is, but she strongly supports energy efficiency as the way to go. Believe that could be more productive than individual company programs. This is where she stands.
Commissioner Nelson said there have been a couple of parties who raised concerns in this docket and he thought it was premature to have a hearing but as we go forward if they are able to document their concerns, the Commission needs to give them the opportunity to be heard.
Bart Kline asked to review what the Commission is saying: Idaho Power needs to assess the case they have put on so far and if there is more information needed, bring that in; but at this point there is not going to be a hearing and the case will be held until the company comes back.
Commissioner Nelson made a motion that the Commission approve the application to charge ‘97 expenses against ‘97 earnings.
Commissioner Hansen asked for discussion.
It was clarified that it was “97 revenue sharing balance”.
Vote was then taken on the motion; it carried unanimously.
Brad Purdy asked for clarification on the rest of the case - the commission wants to defer action until the company comes forward? Idaho Power knows that they are to file additional information?
Commissioners agreed that was what they intended.
4. Brad Purdy’s December 21, 1998 Decision Memorandum re: Case No. IPC-E-98-16; In the Matter of the Application of Idaho Power Company for Recovery of its Remaining Deferred Demand Side Management Conservation Expenditures.
Brad reviewed the matter. Said the matter is now ready to go to hearing and that is what staff recommends.
Commissioner Smith made a motion that if staff thinks it needs a hearing, it should be scheduled up as expeditiously as possible.
Commissioner Nelson asked if the company had filed testimony?
Bart Kline replied that they had.
Vote taken on the motion; carried unanimously.
5. Scott Woodbury’s December 18, 1998 Decision Memorandum re: Case No. IPC-E-98-10 (Idaho Power) Proposed Cancellation of Two Firm Energy Sales Agreements.
Scott reviewed the matter. Explained there has been no generation since a landslide occurred. If the contract terminates, there is an overpayment amount from the qualifying facilities. The total amount is in dispute.
Commissioner Hansen asked for discussion.
Commissioner Nelson said he looked this over and considering the facts, think the Commission should approve the cancellation of these contracts and take Mr. Stevenson up on his salvage offer.
There was no further discussion.
Commissioner Nelson’s comments were made into a motion; vote taken; motion carried unanimously.
Meeting was adjourned.
Dated at Boise, Idaho, this 5th day of January, 1999.
Myrna J. Walters
Commission Secretary