20120319_3629.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: MARCH 15, 2012

SUBJECT: ROCKY MOUNTAIN POWER’S APPLICATION FOR APPROVAL OF
ITS ESA WITH MONSANTO PURSUANT TO ORDER NO. 32432, CASE
NO. PAC-E-12-05

On March 5, 2012, PacifiCorp dba Rocky Mountain Power (“Rocky Mountain
Power” or “Company”) and Monsanto Company (“Monsanto”) submitted a joint request seeking
a Commission “Order approving the Electric Service Agreement (the „ESA‟) entered into
between Rocky Mountain Power and Monsanto.” Petition at 1.
THE FILING
The new ESA was required under the provisions of a settlement stipulation accepted
by the Commission in Order No. 32432, Case No. PAC-E-11-12. The Commission‟s Order
established new rates for Monsanto in 2012 that included a new interruptibility credit. The ESA
also includes the calendar year 2013 rates and credit required by the Commission‟s Order. The
new ESA expires at the end of 2013.
Under the terms of the stipulation as cited in item 6 on page 4 of Order No. 32432,
Monsanto‟s rates are also subject to adjustment by Rocky Mountain Power‟s Energy Cost
Adjustment Mechanism (ECAM). The Company noted that the Order acknowledged the filing
of the parties‟ ESA on December 23, 2011, but did not specifically accept or approve the
agreement.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the confidential ESA and found that it was similar to previous ESAs
approved by the Commission. Staff believes that the terms and conditions are reasonable and
DECISION MEMORANDUM 2

that they reasonably protect Rocky Mountain Power‟s other customers. Staff‟s review confirmed
that the ESA meets the requirements of the settlement stipulation accepted by the Commission in
Final Order No. 32432.
Staff recommends Commission approval of the ESA with an effective date of January
10, 2012, as proposed by Rocky Mountain Power and Monsanto.
COMMISSION DECISION
Does the Commission wish to enter an Order approving the ESA between Rocky
Mountain Power and Monsanto with an effective date of January 10, 2012?

M:PAC-E-12-05_np