ORDER NO. 98-081

ENTERED MAR 06, 1998

This is an electronic copy. Appendices not included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UE 91

DISPOSITION: APPLICATION GRANTED

Background. On January 26, 1998, Idaho Power Company (Idaho Power) applied to amend Order Nos. 93-966 and 95-690 to suspend the requirement that Idaho Power file revised tariffs to reflect the expiration of the excess power cost temporary rate increase.

The condition to be amended requires the company to file revised tariffs 45 days prior to the date it expects full recovery of its excess power cost deferral. Full recovery is forecast to take place sometime during the first quarter of 1998. Any overcollection of the power cost amortization would continue to accrue interest and would be applied toward accelerating recovery of the demand side management (DSM) expenditures if the Commission approves the company’s upcoming accelerated DSM recovery application. If the Commission determines not to allow the accelerated amortization of DSM costs, the accumulated amount of overcollections, including interest, would be returned to the company’s Oregon customers.

The company plans to file an application on or before April 22, 1998, requesting authority to accelerate recovery of deferred DSM expenditures. The proposal, which would be similar to the application the company expects to have approved by the Idaho Public Utility Commission, would accelerate the amortization period for DSM to five years from the current 24-year period.

Commission approval would allow the company to continue billings using the current temporary power cost rate until the Commission and staff can review and act on the DSM application. Assuming Commission approval of that application, rates could eventually either remain unchanged, resulting in a slightly shorter than five-year amortization period for the DSM costs, or could be lowered slightly to encompass the full five-year period.

Staff Recommendation. Staff submitted a recommendation to the Commission at the February 17, 1998, public meeting. Staff’s recommendation is attached as Appendix A and is incorporated by reference. Staff recommended that the Commission amend Order Nos. 93-966 and 95-690 to delete conditions 2, 3, and 4 in their entirety and substitute the following conditions:

2. The temporary rate increase authorized by this Order will continue in effect until the Commission modifies or rescinds the tariff. Commission action with respect to this tariff is expected to occur in connection with Idaho Power’s Application for accelerated DSM cost recovery to be filed on or before April 22, 1998.

3. Until the Commission acts on the Application for accelerated DSM cost recovery, Idaho Power will monitor the accumulated additional revenues collected as a result of the excess power supply cost recovery surcharge. Idaho Power will file a report with the Commission of actual amortizations and revenues collected on a calendar quarterly basis within 45 days after the end of each quarter.

Commission Decision. At its February 17, 1998, public meeting, the Commission voted to adopt staff’s recommendation.

ORDER

IT IS ORDERED that Commission Order Nos. 93-966 and 95-690 be amended to delete Conditions 2, 3, and 4 and to substitute the two conditions set out above in the section headed "Staff Recommendation."

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 applicable law.