ORDER NO. 97-279

ENTERED JUL 24 1997

This is an electronic copy. Appendices not included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 855

DISPOSITION: ACCOUNTING APPLICATION APPROVED

At its July 8, 1997, public meeting the Public Utility Commission considered and adopted a recommendation from the Commission Staff (Staff) to approve Idaho Power Company’s (IP) accounting application as filed, for accounting purposes only.

IP filed its application on June 6, 1997, requesting an order approving changes in accounting for additions and retirements in certain general plant accounts at the vintage level for each account, rather than on an individual item basis. The accounts are included as Attachment 1 to this order and incorporated herein by reference. According to Staff’s memorandum, the proposed method will simplify the process of tracking and reporting net asset values and will create a change in the way retirements are recorded during their asset service lives.

The current procedure, Staff notes, requires recording the original purchase of individual assets in a detailed subledger, assigning unit costs, recording transfers and retirements, preparing paperwork, assigning and attaching identification numbers to assets, and conducting periodic inventories.

In Staff’s view, the affected accounts comprise a small percentage (about 2.0 percent) of total net plant investment. The individual items are relatively inexpensive, are generally portable, and are frequently relocated. Because of their size and mobility, they are very difficult to track and maintain in valid location, retirement, and transfer records. IP’s proposal would avoid this labor intensive process.

Staff points out that IP’s request is revenue neutral, because it would continue to depreciate the affected accounts using currently approved depreciation rates.

On May 23, 1997, the Idaho Public Utilities Commission issued Order No. 26937, authorizing IP to implement the requested change in accounting and amortization of the general plant accounts. In addition, the Oregon Public Utility Commission approved a similar change in UE 88 for Portland General Electric (Order No. 95-322).

The Commission’s approval of IP’s application is for accounting purposes only and does not constitute approval for ratemaking purposes.

ORDER

IT IS ORDERED that Idaho Power company’s accounting application is approved as filed, for accounting purposes only.

Made, entered, and effective ____________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of service of this order. The request must comply with the requirements in OAR 860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070(2). A party may appeal this order to a court pursuant to ORS 756.580. A party may also ask the Commission for a hearing pursuant to ORS 756.515(5) to determine whether this order should continue in effect.