20041220_1036.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:DECEMBER 14, 2004
RE:IDAHO POWER'S APPLICATION TO RECOVER COSTS OF ITS CLOUD
SEEDING PROGRAM, CASE NO. IPC-04-
On October 21 , 2004, Idaho Power Company filed an Application for an accounting
order, requesting the Commission authorize the Company to defer 90% of the Idaho
jurisdictional expenses the Company will incur during the winter of 2004-2005 to operate its
ongoing cloud seeding program. For two years Idaho Power has funded its cloud seeding
program without any cost recovery and asks that its costs during this winter be recovered on the
same 90%-10% ratio by which other power supply expenses are shared between customers and
shareholders in the PCA. On November 3 2004, the Commission issued a Notice of Application
and Notice of Modified Procedure establishing a comment period. Written comments were filed
by the Commission Staff, which supported approval of Idaho Power s Application. Two written
comments were received from members of the public, both recommending the Commission deny
the Company s Application.
In its comments, Staff summarized the evidence Idaho Power provided in prefiled
testimony on the effectiveness of the cloud seeding program. Two different methods are used to
determine the effectiveness of the program, the target-control method and the trace-chemistry
method. The target-control method is a way to evaluate whether precipitation in the cloud
seeding area exceeds the amount that might be expected based on snowfall outside the cloud
seeding area. The trace chemistry-method identifies silver iodide and two other chemical agents
that are used in cloud seeding in samples taken from snowfall. Using these methods, Idaho
Power claims the cloud seeding program produced an estimated 110 000 acre feet of increased
DECISION MEMORANDUM
run-off during 2002-2003 and 68 000 acre feet of additional precipitation during 2003-2004.
Based on its review of the Company s program, Staff stated it believes the program is promising
and recommended PCA treatment of the variable costs of the program for the winter of 2004-
2005. The Company estimated those costs to be approximately $950 000.
COMMISSION DECISION
Should the Application of Idaho Power Company for an accounting order to allow
recovery for costs of its cloud seeding program for the winter of 2004-2005 be approved?
_._-
Weldon Stutzman
Vld/M:IPCEO424 ws2
DECISION MEMORANDUM