20050509_1186.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
W 0 RKIN G FILE
FROM:ALDEN HOLM
DATE:MAY 6, 2005
RE:CASE NO. IPC-05-14; COMPLIANCE FILING.
On April 13 , 2005, Idaho Power Company (Company, IPC) filed an Application to
increase its rates and charges for electric service to take into account income taxes in compliance
with the Commission s Order No. 29601. In that Order, the Commission directed the Company to
utilize statutory tax rates to determine the Company s revenue requirement as proposed in a Joint
Motion for Acceptance of Settlement, and also approved the Stipulation that memorialized the
settlement agreement.
The settlement and ensuing Order required three things:
1. The ongoing revenue requirement was increased by $11 504 677 above the level
approved in Order Nos. 29505 and 29547.
2. For the period of June 1 , 2004 through May 31 2005, the Company was ordered to
compute and record each month in a regulatory asset account with interest, the
additional revenue the Company would have received had the statutory tax
methodology been approved in the final rate case Order. The asset was to accrue at a
rate of$0.92209 per MWh. The regulatory asset would be recovered during June 1
~005 through May 31 , 2006 with a one-year rate adjustment.
3. Finally, the Company s rates would be adjusted to recover the $11 504 677
incremental income tax impact of using the statutory income tax rates to become
effective on June 1 , 2005.
In its filing, Idaho Power complies with each of the above requirements and proposes a recovery
methodology.
DECISION MEMORANDUM - 1 -MAY 6, 2005
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:ALDEN HOLM
DATE:MAY 6, 2005
RE:CASE NO. IPC-05-14; COMPLIANCE FILING.
On April 13 , 2005 , Idaho Power Company (Company, IPC) filed an Application to
increase its rates and charges for electric service to take into account income taxes in compliance
with the Commission s Order No. 29601. In that Order, the Commission directed the Company to
utilize statutory tax rates to determine the Company s revenue requirement as proposed in a Joint
Motion for Acceptance of Settlement, and also approved the Stipulation that memorialized the
settlement agreement.
The settlement and ensuing Order required three things:
1. The ongoing revenue requirement was increased by $11 504 677 above the level
. approved in Order Nos. 29505 and 29547.
. 2. For the period of June 1 2004 through May 31 2005, the Company was ordered to
compute and record each month in a regulatory asset account with interest, the
additional revenue the Company would have received had the statutory tax
methodology been approved in the final rate case Order. The asset was to accrue at a
rate of$0.92209 per MWh. The regulatory asset would be recovered during June 1
2005 through May 31 2006 with a one-year rate adjustment.
3. Finally, the Company s rates would be adjusted to recover the $11 504 677
incremental income tax impact of using the statutory income tax rates to become
effective on June 1 2005.
In its filing, Idaho Power complies with each of the above requirements and proposes a recovery
methodology.
DECISION MEMORANDUM - 1 -MAY 6, 2005