ORDER NO. 96-056

ENTERED MAR 04 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UE 92 UI 110

In the Matter of the Application of IDAHO POWER COMPANY for Authority to Increase its Rates and Charges for Electric Service to Customers in the State of Oregon. UE 92.

In the Matter of the Application of IDAHO POWER COMPANY for an Order Approving Firm Energy Sales Agreements. UI 110.

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DISPOSITION: RECONSIDERATION GRANTED

On November 28, 1995, the Commission issued order No. 95-1240, resolving all but one issue in Docket Nos. UE 92 and UI 110. The one remaining issue related to Docket No. UE 92 and was separated into Phase II. On January 26, 1996, Idaho Power Company (IPCO) filed an application for rehearing or reconsideration of Order No. 95-1240. The application relates to a portion of Order No. 95-1240 that addresses Docket No. UI 110. No responses to the application were filed.

The subject portion of Order No. 95-1240 reads as follows:

IT IS ORDERED that: . . .

5. . . .

. . .

c. For accounting purposes, IPCO shall record in its regulated books of

account the purchased power costs, appropriately allocated to Oregon

customers, based on the Commission's approved avoided cost rates;

IPCO is concerned that the subject language will be considered a waiver of its authority to seek a determination of the Commission's legal authority to reprice, for Oregon revenue requirement purposes, Idaho Qualifying Facility resources purchased at rates approved by the Idaho Public Utilities Commission. IPCO wants the option to be able to assert in a future proceeding before the Commission that a qualifying facility (QF) located in Idaho should be priced at rates determined and approved by the Idaho Public Utilities Commission.

The subject paragraph in Order No. 95-1240 addresses how IPCO is to record purchased power costs in its books of account. It does not preclude IPCO from raising the issue of the Commission's authority to reprice a QF located in Idaho. IPCO is at liberty to raise that issue in a future Commission proceeding. To allay any doubt about the matter, Order No. 95­1240 will be amended as requested.

ORDER

IT IS ORDERED that:

  1. The application for rehearing or reconsideration filed by IPCO on January 26, 1996, is granted.
  2. Section 5. c. of Order No. 95-1240 is amended to read as follows:
    c. For accounting purposes, IPCO shall record in its regulated books of account the purchased power costs, appropriately allocated to Oregon customers, based on the Commission's approved avoided cost rates. This condition does not preclude IPCO from seeking, in a future Commission proceeding to set IPCO's revenue requirement in Oregon, a determination of the Commission's legal authority to reprice Idaho qualifying facilities purchased at rates determined and approved by the Idaho Public Utilities Commission.


Made, entered, and effective______________________________.


_______________________________

Roger Hamilton

Chairman


_______________________________

Ron Eachus

Commissioner



_______________________________

Joan H. Smith Commissioner

A party may appeal this order to a court pursuant to ORS 756.580.

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