SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report February 10, 1995
(Date of earliest event reported)
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IDAHO POWER COMPANY
(Exact name of registrant as specified in charter)
Idaho 1-3198 82-0130980
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1221 W Idaho Street
Boise, Idaho 83702-5627
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, (208) 388-2200
_____________________________________________________
Former name or address, if changed since last report.
(This document consists of 3 pages)
Idaho Power Company
Form 8-K
Items 1 through 4 and Items 6 and 7 are inapplicable and have been omitted
herefrom.
Item 5. Other Events
(1) On January 31, 1995, the Idaho Public Utilities
Commission (IPUC or Commission) issued Order No 25880, Case No IPC-E-94-5,
which established an Idaho jurisdictional revenue deficiency for the Company
of $17.2 million, or 4.19 percent. The rate relief granted is based on an
11.0 percent allowed return on equity with an overall rate of return of
9.199 percent. The Company had requested $37.1 million in general rate
relief representing a 9.09 percent increase in rates, a 12.5 percent return
on equity and a 9.88 percent overall rate of return. Pursuant to the Order
on Friday, February 3, 1995, the Company filed new tariffs with the
Commission for new rates effective for electric service rendered on and
after February 1, 1995.
The Company requested an actual capital structure and component costs as
of December 31, 1993 with a 12.5 percent return on common equity. The
IPUC authorized an allowed return on common equity of 11.0 percent, which
resulted in an approximate reduction of $13.7 million to the Company's as
filed revenue requirement. Other adjustments to operating revenues,
expenses and rate base resulted in an additional reduction of $6.2 million
to the Company's as filed revenue requirement.
One major issue that was resolved by the conclusion of this general rate
proceeding was the establishment of the Company's Power Cost Adjustment
(PCA) mechanism at a 90 percent net power supply cost recovery level
effective February 1, 1995, for the difference between forecasted and
actual net power supply costs. Previously, the Company's PCA recover
level was set at 60 percent.
The Company is disappointed with the IPUC's decision, and is considering
filing a Petition for Reconsideration with the IPUC seeking review of
certain issues within the order, particularly the return allowed on common
equity. The Company is unable to predict the outcome of this proceeding
if this were to occur.
(2) In September 1993, the Company submitted a detailed
position paper to the IPUC and other interested parties outlining proposed
changes in the Company's resource acquisition policy. In December 1993,
the Company filed with the IPUC for permission to implement lower published
prices for new cogeneration and small power production (CSPP) contracts.
In response to the Company's filing, on January 31, 1995 the IPUC issued
Order No. 25882 approving lower published CSPP rates. In the Order, the
IPUC also determined that negotiated rates for future CSPP projects larger
than 1 megawatt should be more closely tied to values determined in the
Company's integrated resource planning process. Prior to this Order, CSPP
projects up to 10 megawatts were entitled to the higher published rates.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
IDAHO POWER COMPANY
By: /s/ J LaMont Keen
J LaMont Keen
Vice President and Chief Financial Officer
Dated: February 10, 1995