20080811_2325.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL
DATE:AUGUST 7, 2008
SUBJECT:CASE NO. IPC-08-
IDAHO POWER'APPLICA TION FOR APPROV AL
AMENDMENT TO AN AGREEMENT WITH A VIMOR LLC
On July 29, 2008, Idaho Power Company filed an Application for approval of an
amendment to an Agreement the Company has with A vimor LLC. A vimor is the developer of a
subdivision north of Boise and agreed to pay Idaho Power $4.3 million to construct facilities
specified in the Agreement required to serve the development. The Company requested
Commission approval of the Agreement in an earlier case, and the Commission approved the
Agreement with modifications. The amendments to the contract for which the Company now
requests approval include refunds for connections within the A vimor development at $110 per
kW of estimated demand for residential service connections; refunds for non-residential loads are
calculated by multiplying $110 times the k V A rating of the distribution transformers serving
each non-residential account. Additionally, an amendment allows contributions from customers
connecting in a geographic area outside of the A vimor project. These line capacity charges
would be assessed at 100 per customer receiving service under Schedule 1 , and non-
residential service schedules would pay $110 times the kV A rating of the distribution
transformer service of each non-residential account. In subdivisions where Rule H applies, line
capacity charges would be collected in addition to regular Rule H charges. Refunds, including
refunds of line capacity charges, would be paid to A vimor only up to 10 years, or less if A vimor
has received the full $4.3 million amount it contributed for the construction of facilities.
DECISION MEMORANDUM
Idaho Power requests that its Application be processed by Modified Procedure. Staff
recommends the Application be processed by Modified Procedure with a 21-day comment
period.
COMMISSION DECISION
Should the Application of Idaho Power Company for approval of amendments to its
Agreement with A vimor be processed by Modified Procedure?
Weldon Stutzman
Deputy Attorney General
bls/M:IPC-O8-15 ws
DECISION MEMORANDUM